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Education & Globalization

Education and Globalization i


Education & Globalization

Edited by:
Tereso S. Tullao Jr.

PASCN
P HILIPPINE APEC ST U D Y CE N T E R NE T W O R K

PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES


Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Education and Globalization iii


Copyright 2003
by the Philippine APEC Study Center Network (PASCN)
and the Philippine Institute for Development Studies (PIDS)

Printed in the Philippines. All rights reserved.

The findings, interpretations and conclusions in this volume are those of the authors and do
not necessarily reflect those of PASCN and PIDS and other institutions associated with the
PASCN project on education and globalization. The publication of this volume was funded
by PASCN and PIDS.The members of PASCN include: Asian Institute of Management,
Ateneo de Manila University, Mindanao State University, Central Luzon State University,
De La Salle University, Foreign Service Institute, Philippine Institute for Development Studies
(Lead Agency and Secretariat) Silliman University, University of Asia and the Pacific,
University of San Carlos, University of the Philippines, and Xavier University.

Please address all inquiries to:


PHILIPPINE APEC STUDY CENTER NETWORK SECRETARIAT
PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES
NEDA SA Makati Building
106 Amorsolo St. Legaspi Village
1229 Makati City, Philippines
Tel. no.: PASCN (63-2) 8939588, 8925817; PIDS (63-2) 8935705, 8924059
Fax no: PASCN (63-2) 8939588; PIDS (63-2) 8939589, 8161091
E-mail: pascn@pidsnet.pids.gov.ph; publication@pidsnet.pids.gov.ph
URL: http://pascn.pids.gov.ph; http:www.pids.gov.ph

ISBN 971-564-055-9
RP 10-03-800

Cover and book design by Redel F. Fronda for Cover & Pages Corporation
Typesetting and layout by Redel F. Fronda for Cover & Pages Corporation

iv Education and Globalization


TABLE OF CONTENTS

FOREWORD

PREFACE

CHAPTER 1
Higher Education and Globalization: An Integrative Report
Tereso S. Tullao, Jr.
Introduction ............................................................................................. 1

Forces of Globalization ........................................................................... 2

Objectives of the Integrative Paper. ....................................................... 4

The Impact of Globalization on Higher Education .............................. 4

Unifying Theme of the Volume .............................................................. 8

Conclusion ............................................................................................. 14

References .............................................................................................. 15

CHAPTER 2
Domestic Regulation and the Trade in Service: The Role of the Commission on
Higher Education (CHED) and the Professional Regulation Commission
Tereso S. Tullao, Jr.
Executive Summary ............................................................................... 17

Abstract ................................................................................................... 30

Introduction ........................................................................................... 31

Domestic Regulation and International Trade .................................... 36

Commission on Higher Education ....................................................... 52

The Professional Regulation Commission (PRC) ............................... 67

Regulatory Functions of CHED and PRC and

GATS Principles on Domestic Regulation ........................................... 81

Education and Globalization v


Policy Recommendations ...................................................................... 94

Areas for Future Research ..................................................................... 95

Appendices ............................................................................................. 97

References ............................................................................................ 158

CHAPTER 3
Continuing Professional Education: Training & Developing
Filipino Professionals Amidst Globalization
Zenon Arthur Siloran Udani
Abstact .................................................................................................. 163

Executive Summary ............................................................................. 163

Introduction ......................................................................................... 167

Significance of the Study ..................................................................... 168

CPE and Lifelong Learning ................................................................ 168

An integral Paradigm for CPE ............................................................ 170

Selected Professional Associations ...................................................... 178

References ............................................................................................ 210

CHAPTER 4
International Higher Education: Models, Conditions and Issues
Allan B. I. Bernardo
Abstract. ................................................................................................ 213

Executive Summary ............................................................................. 214

Introduction ......................................................................................... 217

International Higher Education: The Problem

of Definition ......................................................................................... 219

Models of International Higher Education ....................................... 222

vi Education and Globalization


Philippine Higher Education: A Brief Overview ............................... 241

International Higher Education in the Philippines:

Prospects and Issues ............................................................................ 250

Internationalizing Philippine Higher Education:

Prospects and Issues ............................................................................ 250

Consequences of Internationalizing Higher

Education in the Philippines .............................................................. 257

Internationalizing Philippine Higher Education:

Some Considerations ........................................................................... 259

Summary .............................................................................................. 262

References ............................................................................................ 266

CHAPTER 5
Philippine Maritime and Nursing Education Benchmarking with
APEC Best Practices
Veronica Esposo Ramirez
Abstract ................................................................................................. 273

Introduction ......................................................................................... 274

Nursing Education in the Philippines ................................................ 276

Maritime Education in the Philippines .............................................. 278

Presentation, Interpretation and Analysis of Data ........................... 298

Conclusions .......................................................................................... 322

Recommendations ............................................................................... 324

References ............................................................................................ 328

ABOUT THE AUTHORS ................................................................................. 334

ABOUT THE PUBLISHERS ............................................................................. 335

Education and Globalization vii


LIST OF FIGURES

CHAPTER 3

Figure 1 CPE Grid ............................................................................................. 170

Figure 2 CPE Training and Development Paradigm ...................................... 174

Figure 3 CPE ...................................................................................................... 208

LIST OF TABLES

CHAPTER 5

Table 1 Total Enrollment and rate of increase/decrease from 1987-1996 .. 277

Table 2 Filipino Nurses Deployed Abroad from 1998-2000 .......................... 277

Table 3 Seafarers Employed Onboard Foreign-going vessels ....................... 279

Table 4 Input-Process-Output Framework

for Benchmarking the Quality of Education ................................................ 289

Table 5 List of Respondent Nursing Institution ............................................ 292

Table 6 List of Respondents Maritime Institutions in the Philippines

And in the APEC Region ................................................................................. 292

Table 7 Data Requirement and Source of Information ................................ 294

Table 8 Data Gathering Modes and Sources of Data .................................... 295

Table 9 Nursing Institutions by Geographic

Distribution and by Data Collection Mode ................................................... 296

viii Education and Globalization


Table 10 Maritime Institutions by Geographic Distribution

and Data Collection Mode ............................................................................... 297

Table 11 Distribution of Employed Nurses by Work Setting as of 1998 ....... 306

Table 12 Job Employment of Filipino Seafarers ............................................. 318

Table 13 Graduate Employment ...................................................................... 319

LIST OF APPENDICES

CHAPTER 2

Appendix 1: Documentary Requirements for the Issuance of Various

Permits to Foreign Students ............................................................................... 97

Appendix 2: Various Rules Governing the Practice of Professions in Accountancy,

Architecture, Civil Engineering and Electrical Engineering ......................... 100

Appendix 3: Various Rules Governing the Practice of Professions in Aeronautical

Engineering, Agricultural Engineering, Chemical Engineering and Electronics &

Communications Engineering ......................................................................... 119

Appendix 4: Various Rules Governing the Practice of Professions in Geodetic

Engineering, Mechanical Engineering, Metallurgical Engineering and Mining

Engineering ....................................................................................................... 138

Education and Globalization ix


FOREWORD

To meet the challenges of globalization, it is necessary to prepare individuals


for a workplace where responsibilities are constantly changing, where information
passes through multiple and informal channels, where initiative-taking is more
important than obedience, and where strategies are especially complex because of
expansion of markets beyond national borders. Therefore, education must help
individuals to perform tasks for which they were not originally trained, to prepare
for a nonlinear path, to improve their team skills, to use information independently
and, finally, to lay the basis of complex thinking linked to the realities of globalization.
This book tackle the impact of globalization on the key dimensions of our
higher educational system. It traces the forces that have contributed and impeded
globalization of education and more importantly, it has identified various threats
and opportunities brought about by globalization of higher education particularly
to a developing country like the Philippines.
On behalf of the PASCN, I would like to express my sincerest gratitude and
appreciation to the authors for their contributions to this publication. We hope that
they will continue to support our efforts in generating more opportunities for greater
understanding and appreciation of national as well as APEC-related issues.

Mario B. Lamberte, Ph.D.


President, PIDS
and Lead Convenor, PASCN

Education and Globalization xi


PREFACE

When private schools started crying out foul over the ‘sprouting’ of new
programs offered by foreign educational service providers without the supervision
from appropriate government educational agencies, they have realized then, that
indeed, the impact of globalization has seeped into the educational sector.

As an all-embracing contemporary phenomenon, globalization has affected


almost all aspects of human life. With greater interdependence among nations,
groups and individuals, wealth has been enhanced through global trade and
investment but at the price of exposing vulnerable sectors to systematic risks and
uncertainties. Globalization is an irreversible reality of contemporary human life.
It is a complex and sometimes a paradoxical process. As it tries to integrate the
global village, at the same time, it breaks down traditional institutions. It has brought
about unequal consequences that even the efficiency gains are being challenged by
sectors that are hurt by the conduct of liberalization and deregulation of the
economy. The negative effects of globalization not only on the productive sectors
of the economy b also on environment, health, education and society as a whole
can no longer be ignored. The key in understanding the fundamental drawback of
globalization is the uneven responses to the path of integration. These asymmetric
consequences that accompany it have created wide divides between those included
from those excluded in the globalization process.

The services sector is becoming the leading economic sector in the country
today. Close to half of the country’s gross domestic product is produced by services
and an equal proportion of the labor force is employed by the sector. With the
advancement in information technology, a move towards knowledge-based industries,
and the stiff competition globally, the role of trade in services will become more
and more prominent in the future. Educational services being a part of the services
sector, cannot escape the challenges of globalization.

Rapid developments in information and communications technology are


leading Filipinos to alternative educational systems including corporate universities,
virtual universities, asynchronous delivery systems, branch campuses, and distance
education. The proliferation of these competing service providers along with the
traditional roles and functions of universities are challenging higher educational
institutions to assess their significance in the light of current trends in the quest for
knowledge. In particular, there is a need to review whether the existing governance
structures, curricular programs, and delivery systems in higher educational
institutions are still appropriate with the rapid developments fueled by the new
demands of a more integrated world and the changing training needs of the labor
force as the country moves towards knowledge-based industries.

Education and Globalization xiii


The need to manage the adverse consequences of globalization emanates
from its complexity, divergent effects, asymmetrical impacts and accompanying risks
and uncertainties. In education, for example, it is widening the educational divide
among institutions within and outside national boundaries that may exacerbate
the existing inequities in educational access and quality. With its impact on breaking
down hierarchy, globalization is also threatening the relevance of educational
institutions and inducing new configurations within academic institutions. These
realities should compel universities to participate in a dialogue so that this process
can be well managed and its negative consequences mitigated. Specifically the
dialogue is intended to understand this complex process, analyze its impact, and
compel educators to act accordingly.

This book on Education and Globalization is a welcome development for


several reasons. Aside from tackling the impact of globalization on the key
dimensions of higher educational institutions, the articles included in the volume
are useful materials for discussions and debate in shaping the country’s position in
the next round of negotiations under the General Agreement on Trade in Services
(GATS) that will focus, among others, on the liberalization of educational services.

The Philippines is mitigating the threats of globalization in order to harness


the benefits of global integration. The paper of Allan Bernardo serves as an excellent
introduction to the various models and the changing discourse in the
internationalization in higher education. The paper of Tereso Tullao, Jr. presents
the role of domestic regulation in preparing the readiness of our professionals and
Higher Education Institutions for globalization. The paper of Veronica Ramirez on
benchmarking is an evaluation on how selected nursing and maritime programs,
the suppliers of highly mobile Filipino professionals, in the country compare with
the academic programs in various educational institutions in selected APEC
economies. The paper of Zenon Udani presents the various schemes on how
professional organizations in this country conduct their continuing education for
personal, professional and organizational development.

The articles in the book become more relevant in the light of possible
pressure for liberalization of the educational sector in the next round of GATS
negotiations. Currently, even without formal commitments to liberalize the sector,
the proliferation of and entry of various foreign educational service providers in
the country have been observed. Although there are no commitments yet in the
GATS pertaining to educational services, the fact that these foreign service providers
are allowed to operate in the country through various modes of supply, the
educational sector was de facto opened. Since entry of foreign service providers
were allowed in the sector, albeit not explicitly, the country may be obligated to
extend the same privilege to other WTO members under the principle of most
favored nation (MFN) or the non-discrimination in the application of market access.
In addition, this will make the educational sector vulnerable in the next round of

xiv Education and Globalization


negotiation. The current situation will make it easier for countries interested in our
educational sector to request that the sector be liberalized. What reasons can the
Philippines give to countries in denying their requests since, when in fact, de facto,
foreign educational service providers are already operating in the country?

This book will not be made possible without the generous grants from the
Philippine APEC Study Center (PASCN). Special thanks are extended to Dr. Mario
Lamberte, President of Philippine Institute for Development Studies (PIDS), the
lead convener of the network and Dr. Myrna Austria, the Executive Director of
PASCN. The papers included in this volume have been subjected to various technical
reviews by experts and have been presented in various regional conferences. For
their critical and valuable comments that helped improved the initial drafts of the
papers, we thank Dr. Ma. Serena Diokno, Dr. Mona Valisno, Dr. Emily Tan, Atty.
Abelardo Dumondon, Commissioner Antonieta Fortuna-Ibe, Dr. Luisa Doranilla,
Atty. Julito D. Vitriolo and Ms. Marie Escueta.

Tereso S. Tullao, Jr.


De La Salle University, Manila
October 18, 2002

Education and Globalization xv


1
CHAPTER
G
Higher Education and Globalization
An Integrative Report
Tereso S. Tullao, Jr.
Research Project Coordinator

INTRODUCTION

G
lobalization is described as a complex process of creating worldwide networks
of capital, technology, and information made possible through enhanced
competition, stronger interconnection and greater interdependence.
Competition has brought enormous changes in the structure of production and
distribution in the global economy. Through the expansion of worldwide networks
and interconnections, globalization has accelerated the interdependence among
nations, groups and individuals (Castells1997 in Brunner 2001). Even its unintended
consequences permeate within these global networks (Giddens 1990). By
compressing the time-space dimension (Harvey 1989), globalization has created
environments functioning in real-time across the globe (Ohmae 1990).
As a worldwide phenomenon, globalization has affected all aspects of human
life. In politics, it continues to threaten the legitimacy and influence of the nation-
state as it yields to international agreements, international institutions and new
forms of sovereignty geared towards global governance (Held et al. 1990). In
economics, it has deepened and expanded global trade causing structural changes
in production and distribution based on comparative competitiveness of economies.
It has also exposed the global village to systematic risks associated with the integration
of the world economy including, among others, environmental destruction and
the spread of crisis (Brunner 2001). From a sociological perspective, through various
forms of networks, globalization has established a veritable global civil society by

Higher Education and Globalization 1


galvanizing and linking various national non-governmental organizations on
common issues of public action aimed specifically to counter the effects of
globalization on various aspects of society (Brunner 2001). In the cultural sphere,
the establishment of global communication industries has threatened, and to some
extent weakened, national values and traditions through the emergence of
multiethnic and multicultural societies towards a global culture (Brunner 2001).

FORCES OF GLOBALIZATION

Globalization through international trade agreements


The role of trade in the expansion of global output has significantly
increased over time. In the 1950’s only about 7 percent of total global production
output was traded. Currently, the share of exports to global output has risen to 25
percent (Smeets 1999 in Pinstrup-Andersen 2000). Between 1970 and 1998, the
value of foreign direct investment grew 15 folds while transnational corporations
have risen from 7,000 to 53,600 (French 2000). There are many reasons for the
expansion of global trade over these years. Many small economies have traditionally
leaned towards the international market as a natural recourse due mainly to their
limited domestic markets. Hong Kong, Singapore, Taiwan and to some extent, South
Korea have used the global economy, that dwarfs their local economies, as their
targeted market to push their rapid economic growth. Other countries have used
export and the external market because of their sad experiences with import
substituting industrial policies that lead to inefficiencies and economic stagnation.
The experience of some economies in Asia and Latin America attests to these failures
of inward economic orientation.
The forces towards the globalization of educational services are reinforced
to a great extent by the globalization of professions and the accession of an increasing
number of economies to international commercial agreements. Nations have
recognized the inevitability of economic globalization and have subjected themselves
to the disciplines of these trade agreements to reap the benefits of an integrated
world market knowing too well that such action may entail social costs.
Over the years, global trade has also expanded because of international
agreements that meant to reduce, if not remove trade barriers. Foremost among
these commercial accords were concluded under several rounds of negotiations
under the General Agreement on Tariffs and Trade (GATT). The GATT is intended
to govern the international trade in goods by requiring acceding economies to
reduce tariffs and non-tariff barriers systematically within a scheduled period. There
were at least eight rounds of international negotiations that were completed since
1947 after the failure of forming the International Trade Organization. Between
these periods, the average tariff for industrial commodities in developed countries
has been reduced from 40 percent to 4 percent (French 2000).
The latest of these trade negotiations is the Uruguay Round completed in
1994 that paved the way towards the establishment of the World Trade Organization

2 Education and Globalization


in 1995 and the birth of other trade agreements including the General Agreement
on Trade in Services (GATS) and Trade Related Intellectual Property Rights (TRIPS).
The GATS is a multilateral agreement that covers legally enforceable rights
to trade internationally in all services except in the exercise of government authority.
The agreement also serves as an avenue of economic growth for all trading countries
in addition to putting in place a set of transparent rules and regulations limiting
the intervention of governments and other institutions in the flow of trade in services.
Previous trade negotiations did not include services mainly due to its
perceived non-tradability. However, developments in information technology, rapid
improvements in telecommunications, expansion of foreign direct investments and
the rise in the global flow of human resources exerted pressures for the substantial
growth in international trade in services.
A review on the specific commitments made by contracting parties on trade
in services will definitely be a major task in the next round of negotiations in the
WTO. Although the Philippines has acceded to subject selected industries in the
services sector under the rules of GATS, it did not, however, make any specific
commitment on professional services including a related subsector, the educational
services. Thus, the forthcoming discussions on measures pertaining to the expansion
of trade in the services sector will put a heavy pressure on the Philippines to make
specific obligations in uncommitted sectors that in turn may usher the opening of
trade in educational services.

Expansion of knowledge and shift towards a knowledge-based economy


The rapid growth and structural transformation of developed economies
have been attributed to a great extent to an increasing share of the services sector.
A large portion of the services sector, in turn, is dependent on skilled professionals
and the utilization of knowledge as the major inputs of production replacing the
primacy of manual labor and physical capital. As a consequence, the share of
knowledge-content commodities or technology-content services and products and
services traded globally has risen to 54 percent in 1996 from 33 percent in 1976
(World Bank 1997 in Salmi 2000). Thus, the current competitive edge of economies
is increasingly sourced from technical innovations and competitive use of knowledge
than from the abundance of the traditional productive resources. The importance
of knowledge, its utilization in various economic activities and its role as the new
engine of growth are attributed to a great extent on the phenomenal explosion in
the global stock of knowledge.

Explosion in information and communications technology


Knowledge is not only expanding exponentially, it is now easily accessible
across the globe due to the rapid developments in information and communications
technology (ICT). This has hastened and strengthened the linkages of universities,
research institutions, scientists and other individuals in the knowledge industry.

Higher Education and Globalization 3


The current global economic restructuring is made possible by the
continuing rapid spread and deep integration of advanced information and
communications infrastructure based on convergence of technology and
telecommunications, broadcasting, computers, and content providers. According
to OECD, the foundations of what is referred to as an information society are being
laid out by the tremendous impact of these communications networks on current
socio-economic relations, institutions and structures (Brunner 2001). This emerging
society is characterized by a networked structure (the Internet and the world wide
web), prominence of knowledge-based industries, and organizational innovations
in economic, legal and social institutions towards the establishment of a learning
society. Thus, integration with or exclusion from the emerging information society
will become the definitive factor explaining the development process of economies
in the future (Castells 1999 in Brunner 1999). In addition, the advances in
telecommunications and information technology have facilitated the delivery of
educational services across national boundaries. Global education has become a
reality that is transforming educational institutions in their training of human
resources. In a more open trading environment, the human resource needs of
economic sectors have become more similar giving rise to the harmonization of
training requirements. The convergence of educational standards internationally
will feed further to a greater expansion of global education.

OBJECTIVES OF THE INTEGRATIVE PAPER

1. To present an overall framework in understanding the impact of


globalization on higher education
2. To trace the forces that have contributed to the globalization of
higher education
3. To trace the factors that have impeded the globalization of higher
education
4. To identify various threats and opportunities brought about by the
globalization of higher education particularly for a developing
country like the Philippines
5. To present a unifying theme for the research team on globalization
and higher education
6. To summarize the key results of the various papers included in the
research team

THE IMPACT OF GLOBALIZATION ON HIGHER EDUCATION

The globalization process together with the shift towards a knowledge-based


economy as the major engine of growth and the explosion in ICT have affected the
enrollment, governance structure, functions, roles, and delivery of higher education
across nations.

4 Education and Globalization


Enrollment
It is estimated that there are 48 million learners around the world in 1999.
With the expansion in educational access and enhanced demand, this number is
projected to increase further and reach 159 million by the year 2025 with Asia
accounting for 87 million. Given this projected increase, the amount spent on higher
education and training will make the sector a significant market worldwide (Lenn
2001). The expansion of demand for higher education and training is also influenced
to a great extent by rapid economic growth in countries that enhanced participation
rates in schools. The demand for skilled workers in knowledge-based industries has
also boosted the demand for post secondary education.

Governance structure
In the light of expanding interdependence and interconnectedness of
various global networks, the focus of academic inquiry has become a search for
solutions to complex problems. As a consequence, universities will have to change
their governance structure to give way to multidisciplinal and interdisciplinal modes
of interaction in instruction and research. Universities structured along disciplinal
lines with a department forming the unit of academic organization will have to
yield to the formation of research teams composed of individuals coming from
various disciplines. Teamwork through interdepartmental, interuniversity and
international linkages will define how knowledge is transmitted, utilized and
expanded in higher educational institutions. The focus on teamwork,
interdisciplinary undertaking and holistic education will give greater importance
to general education. However, the delivery and approach to general education
will need rethinking in the light of rapid expansion of knowledge and over
specialization in various disciplines.
The benefits and costs of internationalization of education can also be
viewed in terms of its impact on the inputs of education, on one hand, and the
outputs of education, on the other hand. From the inputs perspective, the key issue
on global education lies on the improvement of key educational inputs of the
country’s HEIs including faculty qualifications, academic programs, and research
activities. From an output view, the question whether global education can lead to
international recognition, accreditation and hopefully mutual recognition of
graduates of HEIs in the external labor markets will preoccupy educators and
policymakers.
There are certain prerequisites, however, for reaping the benefits of global
education. Due to certain structural deficiencies in higher education in the country,
it is perceived that many schools may not yet be ready to engage in international
cooperation or other modalities of global education. Thus, opening the educational
sector to liberalization may serve as a potential threat to the survival of some schools.
These institutions may naturally oppose any form of liberalization.
In addition, the expansion of trade in educational services will require
harmonization of qualifications of service providers considering the existing

Higher Education and Globalization 5


variances in training requirements, and standards of academic programs across
countries. From an institutional perspective, the expansion of trade in services as
stipulated in the GATS will be influenced, to a great extent, by domestic regulation
(Art. VI on domestic regulation) and mutual recognition (Art.VII on mutual
recognition).

Functions and roles


Accompanying increases in enrollment in higher education worldwide is
the changing pattern in training needs to suit the increasing demand of a knowledge-
based economy for skilled workers. But more than just the completion of degrees
in higher educational institutions is the need for retraining programs after
graduation through continuing education. Furthermore, schools no longer have
the monopoly in delivering knowledge and information in the light of the expanded
role of media and computerized networks that constitute the new components of
the knowledge industry (Brunner 2001). Thus, the traditional model of a university
becomes anachronistic and has to adapt to these pressures by accommodating
clientele beyond secondary school graduates. Higher educational institutions will
also have to reinvent themselves in the way they provide educational and training
services in the light of increasing competition from institutions that provide distance
learning, corporate universities, academic brokers and other new service providers
(Salmi 2000). The emergence of new and efficient competitors in the provision of
training services may push some research-oriented HEIs to relinquish training. They
have to reflect on what their campuses should focus on: transmission or creation of
knowledge.

Delivery of higher education


It is estimated that educational materials in electronic form are doubling
every 10 years due to the developments in ICT. This new form of educational
materials has greatly supplemented the equally expanding printed materials. With
the enormity of information and knowledge coming from various sources, the
problem of information overload is apparently replacing the problems of shortage
of information or slowness of its delivery in the past. These developments have
influenced how higher education is now being delivered.
The role of private institutions is becoming very significant in the delivery
of higher educational services. These institutions are more innovative and flexible
in treating education as a profitable economic venture. Thus, charging students
with fees means they have to cater and adapt to the changing needs of their clientele.
These characteristics are giving the publicly funded institutions stiff competition in
the share of student enrollment, talents and other resources (Futures Project).
Traditional universities that have over emphasized research at the expense of
instruction will have to overhaul their strategies in attracting students in the light of
the market-friendly styles of their new competitors.

6 Education and Globalization


With the onset of developments in ICT, other modes of delivery have
emerged including branch campuses (campuses set up by an institution in a country
to provide its educational programs to foreign students), franchises (institution A
approves institution B in another country to provide one or more of A’s programs
to students in country B), articulation (systematic recognition by institution A of
specified study at institution B in another country as partial credit towards a program
at institution A), twinning (agreements between institutions in different countries
to offer joint programs), corporate program (companies that sell curriculum and
training services), distance education programs (distance education programs that
are delivered through satellites, computers, correspondence, or altogether through
technological means across national boundaries.), and study abroad programs
(student from country A goes to country B to live and study at an institution in
country B.) (Lenn 2001).
Opening the educational sector of countries in the ASEAN region may also
contribute to the growing external pressures for the Philippines to evaluate the
reasons why these countries considered the liberalization of their educational
services. The entry of foreign players in the school system has been viewed as a way
of augmenting the limited number of colleges and universities, lower the cost of
overseas education, avail of the professional services and academic programs of
excellent foreign educational institutions and improve the quality of higher
education domestically.
Various examples in the region have utilized the entry of foreign educational
investments to expand and enhance higher education. In Thailand, foreign
universities have been allowed to establish branches locally. In Malaysia, twinning
partnership has been allowed as well as the establishment of branches and other
forms of linkages to expand the number of school placements domestically.
Singapore is currently attracting a number of well-known universities from the United
States, which has made the city-state a regional hub. It is also actively recruiting
foreign professors to further improve and make its universities internationally
competitive.
The pressure for globalization in the educational sector is not only coming
from external forces but also from internal factors. The educational sector in the
Philippines is quite important in many respects. Education as an investment in
human capital has indeed contributed in explaining increases in labor productivity,
as well as national income of many nations. It is crucial that developing countries,
therefore, invest heavily in education, in order to improve productivity and enhance
their growth potentials.
HEIs in the country number around 1,450 with 113 state colleges and
universities employing close to 90,000 faculty members and enrolling more than
two million students pursuing various academic programs. Given the inadequacies
of our educational sectors including, among others, the lack of qualified teachers,
absence of research activities, underdeveloped graduate programs and inadequacy
of academic programs, there is a need to search for alternative modes of educational

Higher Education and Globalization 7


delivery that may rectify the ills of higher education in the country. These
inadequacies will have to be addressed since they will reflect on the capacity of the
sector in the formation the country’s manpower in a global setting. A more important
question to answer is to evaluate whether the impact of globalization on educational
services will indeed contribute to correcting such inadequacies.

Widening the educational divide


Since the availability of information and communication infrastructures is
an important component that facilitates the global integration of higher education,
the impact of globalization on education in developing countries becomes more
pronounced by widening of the knowledge gap brought about by technological
divide. Many HEIs in developing countries may not be able to exploit the tremendous
opportunities offered by the explosion of knowledge and the benefits of the ICT
revolution because of insufficient resources. It is, therefore, possible that a dualistic
system of higher education in developing countries may emerge as a result of
globalization where select universities participate in global education while the
technologically handicapped institutions remain isolated and stagnant.
More than a mere identification of modalities, there is a need to situate
how these current models may bring various benefits to the country’s educational
setting. In particular, will these modalities enhance the productivity and efficiency
of the country’s educational institutions or will they further exacerbate existing
problems of gaps between schools? An evaluation of the benefits and costs of the
modalities will provide an appropriate perspective in deciding whether to open the
educational sector or not. Will the process of liberalization just reinforce the existing
dualism in the Philippine educational system? Will liberalization improve quality
and educational processes or will this further exacerbate the emerging gaps between
selected quality schools and the myriad of HEIs in the country.
Moreover, with the liberalization in the movement of persons, particularly
highly skilled workers, developing countries will be confronted with brain drain
and low educational quality brought about by globalization and the movement of
professions and highly skilled workers.

UNIFYING THEME OF THE VOLUME

Given these threats and opportunities, what options do higher educational


institutions in developing countries have to pursue? One of the key responses to
these challenges is the maintenance of quality to reap the tremendous opportunities
offered by globalization and the mitigation of its enormous threats. Thus, there is a
need to study how this important issue of quality assurance is sustained and developed
in the context of a globalized environment in higher education. At a macro
perspective, government policies pertaining to the provision of educational services
and movement of professionals should be developmental and not purely regulatory.
These polices are meant to improve the quality of the incumbents and not merely

8 Education and Globalization


to protect them. At the micro level, there is a need to study how educational institutions
are responding to the threats and opportunities of globalization in line with quality
assurance. A study on benchmarking, accreditation, continuing education, curriculum
revision are all intended to improve the quality of educational services.
Given the importance of quality assurance in the discussion on the implication
of globalization on higher education, the unifying theme chosen for the research
team is Quality Maintenance and Development: Response to the Threats and Opportunities in the
Globalization of Higher Education. Through various forms of quality assurance programs,
educational institutions may be able to reap the opportunities of globalization and
mitigate its negative consequences. Thus, the research papers are intended to evaluate
the readiness of HEIs in the Philippines as well as their graduates, the Filipino
professionals, to participate and compete in a global setting.
The paper of Dr. Allan Bernardo examines various modes of globalization
in education and identifies both the positive and negative contributions of this
phenomenon to the development of higher education in the country. The analysis
discusses the quality of education in the country as a major setback for participation
in a global educational setting. The maintenance and development of quality by
leading universities were also discussed.
The paper of Tereso Tullao presents the avenues of making domestic
regulation work for globalization. He argues that rather than making these regulatory
bodies impede the international flow of educational services and the professional
services, they should be made more developmental. In such a perspective, inflows
of foreign professionals into the economy may be dealt with the readiness of qualified
domestic professionals. In the same light, the outflow of professionals may be made
possible because of the qualification requirements of Filipino graduates and
professionals are comparable with requirements abroad.
The paper of Veronica Ramirez shows how academic programs in selected
HEIs in the country compare with similar institutions in the region through
benchmarking with their best practices. The focus on the maritime and nursing
programs aims to evaluate the quality of educational institutions in preparing the
two internationally mobile Filipino professionals.
The paper of Dr. Zenon Udani presents the process of continuing education
as another important avenue for responding to the threats and opportunities of
globalization of professions services. He cites various programs pursued by
professional groups in the country in upgrading their members through continuing
education. Preparing globally competitive Filipino professionals through the
processes of information, formation and transformation are inherent in continuing
professional education programs. Updating the competence of professionals
regularly is a necessary condition for making them ready to confront any threat of
international competition.

Higher Education and Globalization 9


Avenues for internationalization of higher education
The initial task in evaluating the contributions of opening the educational
sector to foreign players is to understand the meaning of global education and the
avenues for the internationalization of education. In view of this, the topic on avenues
for globalization will focus on the identification of its various modalities. The paper
of Dr. Allan Bernardo explores and reviews the various models of internationalization
of education pursued in the past, current practices, and possible trends in the future.
More than identifying the modalities, it recognizes the need to assess how these
current models may provide various benefits to the country’s educational setting.
His paper provides an overview on the readiness of Philippine HEIs for international
competition. It examines whether the modalities will enhance the productivity and
efficiency of HEIs or further exacerbate existing problems of gaps between schools.
Benefits and costs of modalities are evaluated to provide an appropriate perspective
in deciding whether to open the educational sector or not, for liberalization may
just reinforce the existing dualism in the educational system. Possibilities of
improvement in the quality and educational processes are weighed against the
tendency of further widening gaps between some selected quality schools and the
myriad of HEIs in the country.
The paper suggests discerning two strong agenda in various
internationalization activities:
a. The traditional internationalization, which is consistent with the spirit
of cooperation among nation states of the old world order
b. Globalization, which involves the discourses of integration of economies,
competition, mass culture, distributed knowledge production systems,
and high technology.
Activities that may be classified as being originally in the spirit of
internationalism include:
a. International student mobility
b. Faculty exchange and development
c. Research and collaboration
d. Foreign language study
e. Building international perspectives
f. International networks.
Internationalizing higher education opens door to various issues and
consequences. Firstly, the stronger Philippine institutions can position themselves as
a destination for student and staff mobility, if they can develop well-defined niches in
the higher education market based on areas of strength around which they can develop
internationally or regionally competitive programs. The elite institutions will be in
the best position to participate and to benefit from international networks; as such
networking requires certain quality and efficiency of participating institutions. In
addition to elite institutions, participation in international education programs might
be limited to students from high-income families, and to institutions with strong

10 Education and Globalization


financial resources that can be channeled to develop programs that will enable them
to meet the requirements of international networks. As a consequence, there is a
strong likelihood that international programs might lead to the intensification of the
existing weaknesses in the Philippine higher education.
Bernardo concludes that the Philippine higher education system could best
benefit from international education activities in terms of improving the quality of
programs and resources. Thus, the paper suggests that quality improvement be a
primary consideration in engaging international higher education through:
a. Strengthening the quality and the efficiency of Philippine higher
education
b. Improving access to quality higher education
c. Creating the external environment that will be conducive to and
supportive of international education activities.

Alternative routes for expanding trade under GATS


Preference for Article VI is premised on the principle that recognition of
qualification of service providers should operate within the basic right of sovereign
nations to regulate their domestic economy and their power to influence activities
within its territory. Article VI prevents countries in setting up barriers to trade in
services arising from the course of the administration of domestic regulation. Such
domestic disciplines should be ‘objective, transparent, not burdensome than
necessary to ensure the quality of service, not inherently restriction on the supply
of service.’
Article VII, on the other hand, focuses on the formation of international
agreements on standards pertaining to training, qualification, experience and
licensing of various service providers. Mutual recognition agreements set the details
on recognition mechanisms, implementation, rules and procedures on licensing
and safeguard measures. Because mutual recognition agreements are usually difficult
to initiate and take a long time to formulate and implement given the wide gaps in
educational requirements, qualifications, training and other standards across
countries, domestic regulation becomes the practicable alternative for expanding
trade in professional services, including educational services.
Within the framework of the GATS on domestic regulation, the paper of Dr.
Tereso Tullao focuses on how two government agencies, the Commission on Higher
Education (CHED) and the Professional Regulation Commission (PRC), articulate
domestic regulation within the bounds allowed by GATS. The paper centers on
reforming the functions of PRC and CHED from regulatory to developmental.
Specifically, Tullao identifies and assesses the regulatory functions and powers of
CHED in monitoring the operations of HEIs in the country. In addition, it reviews the
regulatory functions of PRC relative to the principles utilized in the formulation of
domestic regulations under GATS.

Higher Education and Globalization 11


The paper suggests measures to improve the quality of Filipino professionals,
an essential function of PRC, through:
a. Enhancement of the continuing professional education
b. Enforcement of government regulations on the working environment
for professionals
c. Focus on the development of specialization among professionals
d. Creation of pressures for innovation by establishing norms that exceed
the toughest regulatory hurdles to stimulate upgrading of skills and
productivity among professionals.
For the improvement of higher education in the country, a basic purpose
of the CHED, Tullao suggests that efforts must be undertaken for the:
a. Improvement of faculty qualifications through massive faculty
development programs
b. Expansion of research and improvement of graduate education
c. Rationalization of higher educational institutions
d. Improvement in the role of CHED in information dissemination
e. Rationalization of the price of higher education
Based on the foregoing reform issues, his paper suggests the need to evaluate
the relevance of the labor market test as a requirement for allowing foreign
professionals to practice in the country and of a consistent over-all competition
policy of the country on the practice of professions. Mandatory disclosure for all
professionals and the rule on advertising need to be reviewed.
For the developmental functions of CHED, the paper suggests that the agency
assist in the development of HEIs in the areas of faculty development, research and
graduate education through financial incentives. The agency should disseminate
information on the compliance of HEIs in meeting minimum academic requirements,
faculty profile, student profile, performance of students, quality of facilities and other
educational inputs.
The PRC, on the other hand, should provide avenues for specialization within
the profession and empower various professional organizations particularly in granting
of supplemental and secondary professional titles. The PRC may also expand its
information dissemination activities beyond the publication of a list of leading and
worst performing schools in the production of professionals and move towards
information on market access in other countries, avenues for professional development
and compliance of establishments with appropriate business environments for
professionals. Other developmental functions are detailed in the paper.

Readiness of higher education for globalization


Mutual recognition, however, focuses on entry of services through
international agreements on acceptable qualifications, norms, standards and other
requirements. These items may differ across countries and as mentioned earlier
they are more difficult to arrange. Given the difficulties in forming mutual recognition
agreements, the paper of Dr. Veronica Ramirez sets the preliminary groundwork

12 Education and Globalization


towards mutual recognition. Her paper on international benchmarking will allow
Philippine educational institutions to evaluate and review their academic programs
in terms of the best practices implemented in academic institutions in the region.
Readiness of higher education to meet globalization is determined in this
research project in terms of the capability of academic programs in preparing
students towards global trading environment as well as training Filipino graduates
comparable with graduates of HEIs in other countries.
The paper of Dr. Ramirez, to some extent, evaluates the readiness of
maritime and nursing education in the country to compete in global education. It
evaluates the competitive edge of maritime and nursing education in the country
in relation to international standards by benchmarking them with academic
programs of other HEIs in the APEC region using three sets of indicators to measure
performance of maritime and nursing education. These indicators are then
compared with the performance of similar academic programs in the APEC region.
The choice of maritime and nursing education is based on a significant and
increasing number of graduates of these programs deployed in the global market
in recent years.
Ramirez’s paper highlights the following comparative advantages of the
nursing profession against international counterparts:
a. The profession is founded on a combination of competency-based and
community-oriented curriculum
b. The four-year requirement to earn a bachelor’s degree in nursing
c. The general education grounded on liberal arts strengthens the
character and values of a person as caregiver
d. The medium of instruction is English
e. The capability to participate in research in nursing and other health
sciences
f. The flexibility and openness to the use of new teaching approaches
g. The active involvement in extension work that reaches out to
multisectors
For local maritime institutions, the following comparative advantages were
derived:
a. The 3-1 bachelor’s degree program consisting of general education,
specialization and one-year apprenticeship
b. The use of English as medium of instruction
c. The emphasis of discipline, hard work and team work in maritime
education, which are essential characteristics of servicemen
in the industry
d. The institutions’ ties with the shipping industry
On the basis of the significant findings, Ramirez recommends that some
educational inputs and processes have to be improved by the local nursing and
maritime institutions to be able to turn out graduates who can compete in the global
market. As an immediate concern, nursing and maritime HEIs should focus on the

Higher Education and Globalization 13


improvement of internal efficiency. Studies on competitive advantages of Filipino
nurses and seafarers against global counterparts are suggested as a benchmarking
mechanism. With such studies, local HEIs may then aim for regional accreditation
and certification.
The paper of Dr. Zenon Udani explores another dimension of readiness by
tackling the role of continuing education in the formation of competitive Filipino
professionals. Dr. Udani’s paper focuses on retooling programs after graduation. It
presents a framework on the role of continuing education and to what extent this
has been used in the information, formation and transformation of human resources.
It also evaluates the state of continuing professional education (CPE) among selected
professions in the Philippines. Specifically, it identifies the initiatives and plans of
selected professional associations in retooling Filipino human resources, and
identifies alternative modes of professional education to keep Filipino professionals
competitive and fit in the face of developments in the global labor market.
While updating the competence of members of professional organizations
on current issues in their field is already the dominant thrust of the professional
associations, Udani suggests that professional associations must go beyond updating
and transcend to levels of competence building and performance enhancement of
professionals. Various activities of professional organizations were detailed to
illustrate the extent of their commitment to continuing professional education.

CONCLUSION

Knowing the threats and opportunities that lay ahead equips HEIs in the
country to pursue strategic options. With the enhancement of quality and further
improvement in processes and access to education, HEIs may reap the tremendous
opportunities offered by globalization and counter its accompanying enormous threats.
The issue of quality assurance, its sustainability, and development in the context of a
globalized environment in higher education, need to be studied carefully.
Government policies pertaining to the provision of educational services and movement
of professionals should focus on developmental activities rather than purely regulatory,
an activity PRC and CHED are used to and are currently doing. More than protecting
incumbent professionals and educational institutions, policies should be meant to
improve incumbents’ competence. In line with quality assurance, the response of
educational institutions to threats and opportunities should be studied. Details of
benchmarking, accreditation, continuing education and curriculum revision, studies
should be expanded to continuously improve the quality of educational services.
Through various forms of quality assurance programs, the education sector will be
able to reap the opportunities of globalization and mitigate its negative consequences.
This will determine the readiness of HEIs in the Philippines as well as their graduates,
the Filipino professionals, to participate and compete in a global setting.

14 Education and Globalization


REFERENCES

Asian Development Bank. 2001. “Education Sector Policy Paper.” Manila.

Asian Development Bank and World Bank. 1999. Philippine Education for the 21st
Century, the 1998 Philippines Education Sector Study. Manila.

Bernardo, A. 2001. International Higher Education: Models, Conditions, and Issues.


PASCN Discussion Paper. Makati City, Philippines: Philippine APEC Study
Center Network.

Brunner, J.J. 2001. Viewpoints/ Controversies, Globalization, Education and the


Technological Revolution. Prospects 31(2).

Cogburn, D. (undated). “Globalization, Knowledge, Education and Training in the


Information Age.” Centre for Information Society Development in Africa.

Commission on Higher Education. (2001). Human Resource Development Plan of


Higher Education in the Philippines. Manila.

Geissinger, H. 2000. “Competition in Tertiary Education: The Case for Collaboration


in Australia.” Centre for Enhancing Learning & Teaching, Charles Sturt
University, Australia. (http://www.com.unisa.edu.au/cccc/papers/non-
refereed/geissinger.htm 12.19.2001).

Lenn, M.P. Undated. Higher Education and the Global Marketplace: A Practical Guide to
Sustaining Quality. Washington, D.C.: Center for Quality Assurance in
International Education.

Mellon, B. 2001. “The Globalization of Education and Distance Learning: Challenges


and Opportunities for Indonesia.” News USA. February.

Pinstrup-Andersen, P. and Babinard, J. 2000. Globalization and Human Nutrition:


Opportunities and Risks for the Poor in Developing Countries. Martin
Forman Memorial Lecture. Crystal City, Virginia. June.

Ramirez, V. 2002. Higher Education Institutions benchmarking with international


standards: Towards Mutual Recognition Agreement. PASCN Discussion
Paper. Makati City, Philippines: Philippine APEC Study Center Network.

Salmi, J. 2000. Tertiary Education in the Twenty-First Century, Challenges and


Opportunities. LCSHD Paper Series No.62. World Bank.

Higher Education and Globalization 15


The Futures Project. 2000. The Universal Impact of Competition and Globalization
in Higher Education. The Futures Project: Policy for Higher Education in a
Changing World. Brown University.

Tullao, T, Jr. 2002. Domestic Regulation and the Trade in Services: The Role of the
Commission on Higher Education and the Professional Regulation
Commission. PASCN Discussion Paper. Makati City, Philippines: Philippine
APEC Study Center Network.

Tullao, T, Jr. 1999. An Evaluation on the Readiness of Filipino Professionals to Meet


International Competition. PASCN Discussion Paper. Makati City,
Philippines: Philippine APEC Study Center Network.

Udani, Z.A. 2001. Continuing Professional Education: Training and Developing


Filipino Professionals Amid Globalization. PASCN Discussion Paper. Makati
City, Philippines: Philippine APEC Study Center Network

Winters, E. 1997. Globalization of Education. The Benjamin Franklin Institute of Global


Education. Available from the world wide web (http://www.bfranklin.edu/
hubs/global/winters.htm).

16 Education and Globalization


2
CHAPTER
G
Domestic Regulation & the Trade in Service:
The Role of the Commission on Higher
Education (CHED) and the Professsional
Regulation Commission (PRC)
Tereso S. Tullao, Jr.

EXECUTIVE SUMMARY

T
he next round of negotiations under the World Trade Organization (WTO)
will focus on, among others, trade in services. While the Philippines has
agreed to subject selected industries in the services sector under the rules of
the General Agreement on Trade in Services (GATS) contingent to certain
limitations on market access and national treatment, it did not, however, make any
commitment on professional services and on a related sub-sector, educational
services. Thus, further discussions on liberalization measures in the services sector
will put a greater pressure on the Philippines to make commitments in the trade in
professional services as well as educational services.

One of the rules of conduct embodied in the GATS is the permission for
acceding countries to regulate the provision of any service domestically provided
that such domestic regulatory measures are not meant to discriminate against the
entry of foreign service providers.

In a liberalized trading environment, domestic regulations are allowed to


promote some socially acceptable goals. However, in practice, they may be abused

Domestic Regulation and the Trade in Service 17


and may go beyond what is mandated by the GATS. Thus, the study will provide an
analysis and evaluation on the extent government agencies established for the
regulation of higher education and professional services are used in promoting
social objectives, protecting consumers’ welfare, or protecting the industry’s interests.

The study has the following objectives:

• To identify and analyze the basis utilized in formulating the rules


on domestic regulations under the General Agreement on Trade
in Services (GATS).
• To evaluate the existing disciplines on domestic regulations in
certain professions.
• To identify and assess the regulatory functions and powers of the
Commission on Higher Education (CHED) in monitoring the
operations of higher educational institutions (HEIs) in the
Philippines.
• To identify and assess the regulatory functions and powers of the
Professional Regulation Commission (PRC) in the practice of
various professions in the country.
• To review the regulatory functions of CHED and PRC relative to
the principles utilized in the formulation of domestic regulations
under GATS.
• To propose various measures that would make the regulatory powers
and functions of CHED and PRC consistent with the GATS rules
on domestic regulation.
• To propose various measures that would contribute to the
development of higher education in the country and improve the
global competitiveness of Filipino professionals.

DOMESTIC REGULATION AND INTERNATIONAL TRADE

An important section in the general framework of rules and obligations of


the GATS is the article containing Disciplines on Domestic Regulations. Domestic
regulations are laws and policies that exist in an economy which recognizes the
right of a nation to preserve its sovereignty by influencing activities within its borders
especially with regards to matters of public safety and national security. It may also
be defined quite broadly to include all microeconomic government interventions,
from pollution control policy to implementing licensing procedures and technical
standards. While the GATS ultimately aims for the elimination of barriers in the
trade of services, these domestic regulations are subject to certain conditions.

Article VII, on the other hand, encourages signatories to enter into mutual
recognition agreements. “For the purpose of the fulfillment, in whole or in part, of its

18 Education and Globalization


standards or criteria for the authorization, licensing or certification of service
suppliers…a member may recognize the education or experience obtained,
requirements met, or licenses or certification obtained in a particular country.”

Domestic regulation is based on national differences that compel nations


to define the way they should conduct their economic affairs. In the economic
sphere, the overriding reason for government regulation is the failure of the market
system due to three major causes: exclusion of markets, asymmetric information,
and imperfect competition. Aside from correcting market failure, another argument
supporting domestic regulation is for equity considerations.

In the course of regulating an economic activity, the problem of asymmetric


information can occur between the government and its implementing agencies.
The objectives and instruments of the regulator are typically analyzed using the
principal-agent framework. The model characterizes the principal (government)
as capable of defining the required outputs but unable to achieve them by simple
fiat. Instead, the principal has to contract with agents who are self-interested, and
may well not share the principal’s aims.

At the level of economic transactions, the problem of asymmetric


information is particularly serious in the social sectors compared with the other
sectors of the economy. In the social sectors consumers tend to be more vulnerable
and less informed when compared with the well-informed professional providers.
Furthermore, difficulties of monitoring providers’ behavior imply that contracting
systems in social sectors tend to generate higher transactions processing and
monitoring costs. Thus, treating situations with asymmetric information, the
mandatory disclosures, liability insurance requirements and other labeling
techniques may be prescribed to make the information more even to all economic
actors. (Rollo and Winters, 1999)

A second relevant problem is the higher level of uncertainties that tends to


prevail in the social sectors. These uncertainties are further exacerbated by the
presence of high externalities. For these reasons, governments establish rules and
policies for licensing and technical standards. Many transactions pose risks for
consumers. In an attempt to control such risks, governments will require sellers to
be licensed or alternatively, certified or registered.

Thus, domestic regulation is meant to reduce, if not avoid risk, in the light
of asymmetric information, high degree of uncertainty, and the presence of
externalities. In such a situation, the option of labeling may be considered as an
appropriate regulatory measure. While licenses are difficult or costly to employ
making them an implicit barrier to entry that limits market competition, increasesthe
price, and reduces consumer choice, it may, on the other hand, serve to enhance
service quality.
Domestic Regulation and the Trade in Service 19
Government regulation of economic activities is typically divided into three
classifications: antitrust policy, economic regulation and social regulation. Antitrust
policy is aimed at preserving competitive vigor in the economy as a whole; economic
regulation, concerned with pricing and output decisions in specific industries; and
social regulation, aimed at securing various social goods such as a cleaner
environment and safer products and workplaces.

There are several suggestions on strengthening the provision on domestic


regulation. Article VI of the GATS provides a basic framework for minimizing the
trade restrictions created by domestic regulations. Article VI can be expanded to
cover the scope of transparency stated in Article I by requiring members to explicitly
state the public policy objective served by a regulation. The inclusion in Article VI
of a new provision that would encourage Members to limit the scope of regulations
to what is necessary to achieve the objective served by the regulation is
recommended. Another addition to Article VI should include a provision that would
encourage countries to adopt performance-oriented regulations rather than
regulations that directly seek to establish bureaucratic control over the specific
activities carried out by enterprises. Another possible addition is to encourage
member countries to use market-based incentives and disincentives to achieve
desired social objectives with greater economic efficiency rather than directive
regulations that seek to control the behavior of the market participants. Finally,
Article VI could encourage self-regulation by industry that satisfies the achievement
of the desired social objective.

Efforts to create sectoral guidelines for the liberalization of trade in


professional services have focused on the development of a model agreement for
accounting services. The basic goal of these negotiations is to expand the provisions
contained in Article VI (4) of the GATS. Negotiators are focusing, in particular, on
three criteria built into this provision. Regulations must be based on objective and
transparent criteria, they must not be more burdensome than necessary to ensure
the quality of the service, and any licensing procedure in itself must not restrict the
supply of the service.

The basic issue for governments in accounting, as in other professional


services, is to ensure the professional competence of the individual service provider,
monitor professional performance, and discipline any lapses of professionalism.
From a trade point of view the key issues are whether the standard and procedures
adopted by individual governments constitute unreasonable barriers to the trade.

The best method of ensuring that professional licensing and qualification


standard and procedures are not hidden devices that restrict competition is to
require full transparency of both the regulatory objectives and the regulations. The

20 Education and Globalization


rule should also stipulate that regulations achieve their stated objectives in the least
burdensome manner.

COMMISSION ON HIGHER EDUCATION

The Commission on Higher Education (CHED) was created under Republic


Act (RA) 7722 in 1994 as a separate and independent agency from the Department
of Education Culture and Sports (DECS). As an offshoot of the trifocalization in
the educational reforms in the early 1990’s, CHED was assigned the responsibility
to oversee the system of higher education in the country and for formulating policies,
plans and programs for the development of public and private higher education
institutions. Although an independent agency, it is attached to the Office of the
President for administrative purposes.

Under Section 8 of RA 7722, the Commission has the following powers and
functions:

a. Formulate and recommend development plans, policies, priorities, and


programs on Higher Education;
b. Formulate and recommend development plans, policies, priorities, and
programs on research;
c. Recommend to the executive and legislative branches, priorities and
grants on higher education and research;
d. Set minimum standards for programs and institutions of higher learning
recommended by a panel of experts in the field and subject to public
hearing, and enforce the same;
e. Monitor and evaluate the performance of programs and institutions of
higher learning for appropriate incentives as well as impose sanctions
such as, but not limited to, diminution or withdrawal of subsidy,
recommendation on the downgrading or withdrawal of the
accreditation, program termination or school closure;
f. Identify support and develop potential centers of excellence in program
areas needed for the development of world-class scholarship, nation
building and national development;
g. Recommend to the Department of Budget and Management, the budgets
of public institutions of higher learning as well as general for the use of
their income;
h. Rationalize programs and institutions of higher learning and set
standards, policies and guidelines for the creation of new ones as well
as convert or elevate schools to institution of higher learning, subject
to budgetary limitations and to the number of institutions of higher
learning in the province or region where creation, conversion or
elevation is being sought;

Domestic Regulation and the Trade in Service 21


i. Develop criteria for allocating additional resources such as research and
program development grants, scholarship, and other similar programs:
Provided that these shall not detract from the fiscal autonomy already
enjoyed by colleges and universities;
j. Direct or redirect purposive research by institutions of higher learning
to meet the needs of agro-industrialization and development;
k. Devise and implement resource development schemes;
l. Administer the Higher Education Development Fund, as described in
Section 10 of RA 7722, which will promote the purposes of higher
education;
m. Review the charters of institutions of higher learning and state
universities and colleges including the chairmanship and membership
of their governing bodies and recommend appropriate measures as basis
for necessary action;
n. Promulgate such rules and regulation and exercise such other powers
and functions as may be necessary to carry out effectively the purpose
and objective of this Act; and
o. Perform such other functions as may be necessary for its effective
operations and for the continued enhancement, growth and development
of higher education.

Among the powers vested on CHED, a number of them are regulatory in


nature including setting minimum standards for programs and institutions,
monitoring, evaluating and imposing sanctions on the performance of programs
and institutions and setting standards, policies and guidelines on the rationalization
of programs and institutions. Some of the specific regulatory powers that may impact
on our GATS commitments on trade in professional services include, among others,
the entry of foreign students, establishment of foreign linkages, entry of foreign
professors, accreditation of academic units, establishment of schools and branches,
qualification requirements for foreign students and tuition fees for foreign students.

THE PROFESSIONAL REGULATION COMMISSION (PRC)

The Professional Regulation Commission (PRC) is a government agency


under the Office of the President charged with the regulation and supervision of
various professions under its jurisdiction. It was created by Presidential Decree No.
223 in June 22, 1973 and empowered to implement various laws and policies of the
government including the technical and ethical standards governing the practice
of professions. In December 5, 2000, the Professional Regulation Commission
Modernization Act of 2000 (RA8981) was signed into law and repealed the various
laws defining the legal basis of the PRC.

22 Education and Globalization


The practice of profession is governed by various legislation implemented by
boards composed of practicing professionals in the field and subject to the supervision
of the PRC.

Pursuant to its mandate, the PRC carries out regulatory, licensing, and
supervisory functions. As such, it formulates, prescribes and promulgates policies,
rules and regulations, and standards relative to the admission and practice of
professionals. It also administers the licensure examinations for professional practice
in cooperation with the various Professional Regulatory Boards (PRBs). After the
licensure examination, the PRC issues certificates of registration to the new
professionals. The renewal of professional licenses is another function performed
by PRC in conjunction with PRBs. To ensure compliance and professional standards,
it conducts periodic inspection of establishments with the cooperation of the PRBs.
To assure the global competitiveness and excellence of Filipino professionals, the
Commission, in previous years, has enforced compliance with the continuing
professional education (CPE) requirements. As a quasi-judicial body, it investigates
and adjudicates complaints and cases against professionals.

With the passage of the PRC Modernization Act of 2000, additional powers
and functions were granted to the Commission. It can require an examinee, who
has failed three times to pass the licensure examination, to take refresher courses.
It is also required to provide schools offering courses for licensure examinations
with copies of sample test questions on examinations recently conducted by the
Commission within six months from the release of the examination results. It has
to monitor the performance of schools in licensure examinations by publishing the
results of their performance. In addition, it has to adopt and institute a
comprehensive rating system of schools on the overall performance of their
graduates in licensure examinations. The PRC Modernization Act of 2000 has also
repealed the mandatory requirement of continuing professional education (CPE)
for the renewal of professional licenses.

Under the direct supervision of the Commission are 38 Professional


Regulatory Boards and two Specialty Boards that exercise administrative, quasi-
legislative, and quasi-judicial powers over their respective professions. The 40 PRBs
which are created by separate enabling laws, perform the following functions subject
to review and approval by the Commission:

• Regulate the practice of professions;


• Monitor the conditions affecting the practice of the profession;
• Recommend the registration of a foreign professional without
examination subject to certain conditions;

Domestic Regulation and the Trade in Service 23


• Recommend the issuance of certificate of registration/license or
special temporary permit to foreign professionals subject to certain
conditions;
• Prepare the contents of licensure examinations;
• Score and rate the examination papers of licensure examinations;
• Subject to the approval of the Commission determine the
appropriate passing average rating in licensure examinations;
• Determine, prescribe, and revise the course requirements;
• Visit/inspect schools and establishments for feedback;
• Adopt and enforce a Code of Ethics for the practice of their
respective professions;
• Administer oaths and issue Certificate of Registration;
• Investigate violations of set professional standards and adjudicate
administrative and other cases against erring registrants; and
• Suspend, revoke, or reissue Certificate of Registration for causes
provided by law.

In addition to the above functions and powers, the PRC and various PRBs
implement rules on the entry of foreign professionals, regulations on recognition,
registration, limitations and restrictions on practice and rules on advertising. These
domestic regulatory rules will have an effect on the supply mode of transfer of
natural persons and will be subjected to the conditions on domestic regulation set
under Art. VI of the GATS.

REGULATORY FUNCTIONS OF CHED AND PRC AND GATS PRINCIPLES ON


DOMESTIC REGULATION

The framework on domestic regulation in the GATS operates mainly on


three principles: “… each Member shall ensure that all measures of general
application affecting trade in services are administered in a reasonable, objective,
and impartial manner.” (Art VI:1).

Regulation on the practice of professions facilitates the removal of market


inefficiencies and seeks to lessen social costs of consumers by minimizing risks posed
by foreign service providers. Risks are minimized through licensing procedures,
requirements and technical standards set by local authorities, all of which should
be consistent with GATS provisions on domestic regulations (Art VI, GATS). These
standards ensure the quality of service and professional competence of foreign
providers.

A major difference is observed in the provision of Article VI:4 and rules


governing the employment of foreigners in educational and professional services.
According to the labor market test, employment of a foreign professional will be

24 Education and Globalization


allowed only after the determination of non-availability of a person in the Philippines
who is competent, able and willing at time or application to perform the services
for which the alien is desired.

The labor market test under the Labor Code is one of the main barriers for
trade in services. This law is especially posing trade restrictions in the education
sector, where foreign professionals may only be allowed to teach in the absence of
any other Filipino competent enough to teach the subject where the foreigner
specializes in. In addition, the foreign reciprocity rule requires that the country
where the foreigner came from must apply the same principle or standard for the
entry of Filipino professionals.

Measures to Improve the Quality of Filipino Professionals

Enhance the Continuing Professional Education Program

Under this program, professionals undergo enhancement programs to


continually upgrade and update their knowledge competence and awareness of
developments in their respective professions brought about by modernization and
advances in technology. There is value in requiring professionals to have continuing
education as a process of domestic regulation since this is in line with the protection
of consumers and the promotion of public interest.

Although the current implementation of this program has been a subject


of criticism, the importance of CPE should not be underestimated. Thus, proposals
of some sectors to eliminate the CPE program as a precondition for renewal of
license is uncalled for. In fact, the deletion of this requirement under the PRC
Modernization Act of 2000 is a wrong move because continuing professional
education is one of the pillars of domestic regulation of professionals enshrined
under the GATS. What is needed is to restructure the program and its accreditation
system towards graduate education, research and inventions away from its current
emphasis on attendance of seminars. (Tullao 1998).

Enforce Government Regulations on the Working Environment for Professionals

With the entry of foreign professionals, the PRC should educate the public
on consumer education particularly the rights of consumers of professional service.
The PRC should enjoin professionals to disclose information so that consumers
may be guided accordingly. In an environment of asymmetric information, the role
of the PRC is bridge this information gap by requiring professionals to disclose
their professional competence aside from the licensure from the PRC. However
such disclosure may violate the code of ethics of professionals regarding advertising.

Domestic Regulation and the Trade in Service 25


Focus on the Development of Specialization Among Professionals

Government has critical responsibilities for providing the fundamentals


including basic education, national infrastructure, and research in areas of broad
national concern. Yet these kinds of generalized efforts produce not so clear an
impact on the competitive advantage of professional services. Rather, the factors
that translate a significant effect on competitive advantage are advanced, specialized,
and industry-related initiatives. Mechanisms such as specialized apprenticeship
programs, research efforts in universities connected with an industry, trade
association activities, and private investments of companies ultimately create the
factors that will yield competitive advantage.

Create Pressures for Innovation

Firms should seek out pressure and challenge, not avoid them. Part of the
strategy is to take advantage of the domestic market to create the impetus for
innovation. To do that, firms should establish norms that exceed the toughest
regulatory hurdles to stimulate upgrading of skills and productivity among
professional employees. In addition, adequate incentive schemes should be
developed so as to discourage local professionals from migrating and practicing
their professions overseas.

Measures to Improve Higher Education in the Country

Improve the Faculty Qualifications

In the light of poor qualifications of faculty where only one-third of faculty


members possess the minimum requirements to teach, there is a need to have massive
faculty development programs to upgrade and retool faculty members in more than
1,300 institutions of higher learning all over the country. This should be a continuous
long-term program involving various forms of faculty development programs. The
core program should be earning of graduate degrees in various fields here and
abroad. This measure should be supplemented by attendance in seminars and post-
doctoral studies.

Expand Research and Improve Graduate Education

Related to the supply constraint mentioned above, there is a need to develop


and expand graduate studies beyond programs in education and business. If we
have to develop and upgrade our professionals in various fields, all these fields

26 Education and Globalization


should have excellent quality graduate programs available in the country. Research
and graduate education can be improved by limiting graduate education and
research to qualified universities though a flagship/consortia system.

Rationalization of Higher Educational Institutions

Currently, there are more than 1,300 higher educational institutions (HEIs)
all over the country offering various courses to more than two million students.
There are some 108 state universities and colleges (SUCs) that eat up more than 75
percent of the public funding to higher education. The huge number of both private
and public HEIs, their geographic locations and program offerings have to be
rationalized because they contribute to a great extent to the poor quality of higher
education in the country. This issue of poor quality due to the proliferation of
programs in an overexpanded tertiary education is being addressed through a
moratorium on the establishment of new programs.

Improve the Role of CHED in Information Dissemination

As a government body, the CHED can assist in addressing the problem of


asymmetric information between graduates of educational institutions and
employers. Upon graduation, institutions should confer meaningful degrees and
certificates, perhaps including a warranty, to their graduates. Given this, an employer
or parent should be able to trust that a degree signifies bona fide intellectual
attainment, and students might be willing to pay for education services more than
its worth in the marketplace.

Rationalize the Price of Higher Education

In order for the students to realize the value of higher education, a move
towards internalizing the true cost of higher education should be undertaken. Public
sector schools should start implementing full cost pricing by charging higher tuition
fees, and by increasing the responsibility of local government units in financing
SUCs. This prescription is based on the notion that the primary beneficiaries of
higher education are the students and therefore they should pay for the internalized
benefits. However, deserving and qualified students who cannot afford to pay must
be given assistance in the form of scholarships to address the equity issues.

Reforms in the Regulatory Powers of PRC

Based on a policy paper on regulatory reform on professional services, GATS


members should reform their rules and practices to increase economic competition
in the professions. In particular, governments, especially competition authorities,

Domestic Regulation and the Trade in Service 27


should rescind or modify regulations that unjustifiably prevent entry and fix prices,
and that prohibit truthful, nondeceptive advertising about prices and service offerings.

To ensure consumer protection, member countries should make


competition law applicable to professional business services, subject to safeguards.
To do this, governments should rescind or modify exemptions for the professions
and their regulatory bodies from the generally applicable competition law, consistent
with preserving sufficient oversight to ensure adequate quality of service. This may
require action both by national and subnational (state and provincial) authorities.

Governments should consider developing mutual recognition agreements


(MRAs) for various facets of “professional qualifications” such as educational
qualifications, competence, and skills.

Reforms in the Regulatory Powers of CHED

With globalization as a backdrop, CHED should not focus on establishing


regulatory policies that are restrictive in nature, but rather, more developmental
policies that can enhance the competitiveness of Filipino students when they become
professionals. In addition, CHED can assist in the transformation of Philippine
universities as leading institutions of higher learning in the region.

The role of CHED is to set standards. Although it cannot close down schools
it can, however, close down academic programs that do not meet the minimum
requirements set by the commission. Another aspect of improving quality through
setting of standards is the role of accreditation. Although accreditation is voluntary
on the part of HEIs, CHED encourages institutions to undergo accreditation process
undertaken by various agencies under the umbrella group of the Federation of
Accrediting Agencies of the Philippines (FAAP).

Policy Recommendations

Based on the discussion in the previous sections the following are the
recommendations:

a. There is a need to evaluate the relevance of the labor market test as


requirement for allowing foreign professionals to practice in the
country.
b. The domestic regulation governing the practice of professions should
be consistent with the overall competition policy of the country.
c. There is a need to revisit and review the rule on advertising to make it
more as a tool of mandatory disclosure for all professionals.

28 Education and Globalization


d. The CHED should focus on its developmental functions by assisting the
development of higher educational institutions in the areas of faculty
development, research and graduate education through financial
incentives.
e. The CHED should channel its regulatory functions towards the
dissemination of information particularly on the compliance of higher
educational institutions in meeting minimum academic requirements,
faculty profile, student profile, performance of students, quality of
facilities and other educational inputs.
f. The PRC should focus on its developmental function by providing
avenues for specialization within the profession and by empowering
the various professional organizations particularly in the granting of
supplemental and secondary professional titles.
g. As part of the regulatory function of the PRC, it should expand its
information dissemination activities beyond the publication of a list of
leading and worst performing schools in the production of professionals
and move towards information on market access in other countries,
avenues for professional development and compliance of establishments
on appropriate business environment for professionals.
h. The PRC should encourage the formation of outstanding professionals
and give monetary incentives to young and promising professionals as
well as give recognition to outstanding works, research, and inventions
of professionals.
i. Review the provision of RA 8981 that removed compulsory continuing
professional education as a requirement for renewal of professional
licenses.
j. Review the provision of RA 8981 that requires only licensed and
registered professionals to teach subjects covered in licensure
examinations.

Areas for Future Research

a. Need to examine the perspectives of trade and professional associations


as regards domestic regulation. It would be interesting to know what
role these associations should play in the determination of rules and
regulations pertaining to the practice of professions. In a political
environment where consultation is taken seriously, should these private
organizations play a key role in the formulation of domestic regulation?
What then is the implication of their participation on regulatory
capture?

Domestic Regulation and the Trade in Service 29


b. Since the basis of domestic regulation is the social risks associated with
an unregulated activity in an environment full of uncertainties, there is
also a need to study the type and costs of social risks or the threats to
public interest that become the basis for domestic regulation including
the regulations on the entry of foreign professionals into the country.

c. Since accession to international agreements may imply


internationalization of standards, a study on the social costs of
harmonization of standards and its impact on domestic regulation will
determine our readiness for harmonization. Is it worth our while to
surrender a huge part of our sovereignty in the name of international
harmonization?

d. Since foreign professionals wishing to practice domestically are usually


those that bring with them vast professional experience, there is a need
to study the feasibility of adopting a separate category for foreign
professionals willing to practice with a corresponding set of licensing
requirements and sphere of practice. Is such alternative GATS
compliant? If not, how do we make it GATS compliant?

e. A study to evaluate whether indeed regulatory measures are meant to


minimize social risks in the light of asymmetry in information or are
they domestic walls created to limit the market for professionals for
local and foreign aspirants. Is domestic regulation a form of
monopolization of the practice of professions?

f. A study to determine the possible compensating differences that may


be considered when granting recognition to foreign professionals
wishing to practice

g. domestically.

ABSTRACT

Domestic regulation is a major element that defines the global trade


in services under the rules of General Agreement on Trade in
Services. The study traces the various perspectives in the
formulation of domestic regulation from market imperfections,
exclusion of markets and asymmetric information. It identified the
regulatory functions, and assessed the powers of the Commission
on Higher Education (CHED) and Professional Regulation
Commission (PRC) pertaining to the entry of foreign professionals
and service providers. The assessment includes comparison with

30 Education and Globalization


the GATS prescription that domestic regulation should be
reasonable, objective, transparent, not burdensome than necessary
and should not be used as restriction on trade. Drawing from the
need to address the problem of asymmetric information in the
delivery of professional services for public interest and consumer
protection, the study recommends various ways of refocusing the
regulatory functions of CHED and PRC.

INTRODUCTION

The next round of negotiations under the World Trade Organization (WTO)
will focus, among others, on trade in services. While the Philippines has agreed to
subject selected industries in the services sector under the rules of General
Agreement on Trade in Services (GATS) contingent to certain limitations on market
access and national treatment, it did not, however, make any commitment on
professional services and a related subsector, educational services. Thus, further
discussions on liberalization measures in the services sector will put a greater pressure
on the Philippines to make commitments in the trade in professional services as
well as educational services.

Aside from the stimulus coming from WTO negotiations, developments in


the region are putting enough push for the Philippines to review its competitive
edge in the trade in professional services and educational services. Some countries
in the ASEAN have started to liberalize their trading environment in the services
sector including professional services. As part of the current reform measures, they
are opening up their educational services and their professional services sector to
international competition. In the field of education, they view the entry of foreign
schools as a way of augmenting their limited number of colleges and universities,
lower the cost of overseas education and improve the quality of higher education
available locally. In the Philippines, however, these developments may not be well
received by the 1,300 institutions of higher learning which view the entry of foreign
players as potential threats to their market shares.

One of the rules of conduct embodied in the GATS is the permission for
acceding countries to regulate the provision of any service domestically provided
that such domestic regulatory measures are not meant to discriminate against the
entry of foreign service providers.

In a liberalized trading environment, domestic regulations are allowed for


the promotion of some socially acceptable goals. However, in practice, they may be
abused and go beyond what is mandated by the GATS. Thus, the study will provide
an analysis and evaluation on the extent government agencies established for the

Domestic Regulation and the Trade in Service 31


regulation of higher education and professional services are being used in promoting
social objectives, protecting consumers’ welfare, or protecting the industry’s interests.
Specifically, we want to know whether the existing regulatory measures governing
higher education and the practice of professions are consistent with the disciplines
allowed by the GATS under domestic regulation. More importantly, we want to
investigate whether these domestic regulatory rules facilitate the development of
the sectors they are regulating and assist in reaping the benefits of a liberalized
trading regime. In addition, we want to investigate whether domestic regulations
serve as protective walls to the sectors and hinder their full development to face
global competition.

Part of the study is to analyze the various rationales used as basis for
formulating the rules on domestic regulation under GATS. In addition, we will
review the provisions and disciplines governing the practice of professions,
specifically accountancy, consistent with GATS rules and the free trade in services.
We will also determine the regulatory functions of CHED in monitoring and directing
the operations of institutions of higher learning in the country. In a similar vein, we
will specify the regulatory functions of PRC in overseeing the practice of various
professions. From these evaluations, we would like to propose measures on how to
make the regulatory functions of CHED and PRC consistent with the GATS rules.
At the same time these proposed measures should contribute towards the
development of higher education in the country and prepare Filipino professionals
to face competition in a global trading setting.

Objectives of the Study

• To identify and analyze the basis used in formulating the rules on


domestic regulations under the General Agreement on Trade in
Services (GATS);
• To evaluate the existing disciplines on domestic regulations in
certain professions;
• To identify and assess the regulatory functions and powers of the
Commission on Higher Education (CHED) in monitoring the
operations of higher educational institutions (HEIs) in the
Philippines;
• To identify and assess the regulatory functions and powers of the
Professional Regulation Commission (PRC) in the practice of
various professions in the country;
• To review the regulatory functions of CHED and PRC relative to
the principles used in the formulation of domestic regulations
under GATS;

32 Education and Globalization


• To propose various measures that would make the regulatory powers
and functions of CHED and PRC consistent with the GATS rules
on domestic regulation; and
• To propose various measures that would contribute to the
development of higher education in the country and improve the
global competitiveness of Filipino professionals.

Significance of the Study

In investigating the crucial role played by the educational sector in a global


environment, one can view it as a supplier of human resources, on one hand, and
the as a major player and subject of the liberalization process, on the other hand.

Although GATS rules allow for domestic regulations under a liberalized


global flow of services, it is possible that domestic regulations are used not only to
safeguard legitimate social interests but more so to protect vested domestic interests.
As a consequence, it may create a domestic monopoly in a service provider being
regulated. To the extent that the latter consequence occurs, it is also possible that it
may lead to slow development of the sector or the professional service.

Thus, it is important to know whether existing policies being pursued by


regulatory agencies like CHED and PRC are antidevelopmental or counterproductive
in the light of a liberalized trading regime in the professional services and
educational services. The study can assist our policymakers in aligning these agencies
with the country’s commitments with GATS. While they pursue legitimate domestic
regulatory objectives, these agencies should promote the improvement of higher
education, and at the same time contribute in the production of competent Filipino
professionals ready to compete with foreign counterparts domestically and
internationally.

Expanding trade in professional services will require measures towards the


accreditation of qualifications of service providers in the light of existing differences
in training, requirements, standards, licensing mechanisms across countries. These
differences, in turn are brought about by various systems of domestic regulations
influenced by the socioeconomic and cultural milieu operative across countries. In
establishing guidelines for harmonization of qualifications, member countries under
GATS have different views on which pertinent article of the trade agreement should
prevail: Article VI on domestic regulation or Article VII on recognition of
qualifications.

Preference for Art. VI is premised on the principle that recognition of


qualifications of service providers should operate within the basic right of sovereign
nations to regulate their domestic economy. If this view is held, the intention of

Domestic Regulation and the Trade in Service 33


Art. VI is to prevent the setting up of barriers to trade in services arising from the
course of the administration of domestic regulation. Such domestic disciplines should
be objective and transparent, not burdensome than necessary to ensure the quality of
service, not inherently to restrict the supply of service. (Tullao 1999)

In the same study by Tullao, it was pointed out that various alternatives for
harmonization of standards are being put forward including the establishment of
mutual recognition agreements and other measures but there was no mention on
the implications of domestic regulations on the free flow of professional services
internationally.

As mentioned earlier, educational reforms are being implemented in various


countries in the region. These reform measures have certain implications on the
trade in services. In Thailand, some responses to expand and improve the quality
of higher education include the private internalization of cost, reduction in
government subsidy and the permission for foreign universities to establish branches
locally. In Malaysia, they have allowed twinning, partnership, establishment of
branches and other forms of linkages to expand the number of school placements
domestically. Singapore is currently attracting a number of well known universities
in the United States as their regional site in Asia (Tullao 2000a).

In the Philippines, the CHED has initiated programs towards the


internationalization of higher education. These include the international business
program, academic linkages, internationalization of curriculum, international
consortium and global networking (Tullao 2000b).

Regulations applied in the professional services have as their primary


objective the need to ensure and maintain certain quality of the service and hence
to protect the consumers. Most professional services are heavily regulated and for
good reasons; but it is also true that regulations can be unnecessary and usually
unintended barrier to trade in services. Overly burdensome regulation could have
a disproportionately large impact on foreign professionals who wish to enter foreign
markets. The existence of unreasonable regulations can impede the development
and growth of trade in services.

The movement of foreign professionals and skilled workers across borders


on either a temporary or permanent basis is unquestionably an important factor
that can contribute to the international competitiveness of many businesses.
However, the hiring of foreign professionals can be a grueling process (Bachler
1996). People have to cope with a thicket of governing regulations that so often
seems meaningless, awkward and conflicting (Weston et al. 1996).

34 Education and Globalization


The OECD (1996) has conducted a survey and has compiled an inventory of
regulations on access to professional services in the OECD member countries.

In the field of trade in accountancy services, the general impediments being


cited include among others, restrictions on international payments, restriction on
the mobility of personnel, impediments on technology and information transfer,
public procurement practices, differential taxation treatment, double taxation,
monopolies and subsidies. On the other hand, the specific impediments affecting
accountancy include nationality requirements, compartmentalization/scope of
practice limitations, restriction on advertising, solicitation and fee setting,
quantitative restrictions on international relationships and use of firm names.

In the area of educational services, direct restrictions generally take the


form of immigration requirement and foreign currency controls. There are also
indirect barriers including the absence of objective criteria in determining the
equivalent of academic degrees earned abroad. In this regard, the development of
agreement on standards for professional training, licensing and accreditation might
significantly benefit trade under this mode of supply as foreign-earned degrees
become more portable. There are, however, international companies, aware of the
importance of the qualifications obtained abroad, which dispense with requiring
formal certification and or recognition.

There are several potential barriers to trade under the supply mode of
commercial presence. These restrictions include the inability to obtain national
license (e.g., to be recognized as a degree/certificate-granting educational
institution), measures limiting direct investment by foreign educational providers
(equity ceiling), nationality requirement, need test, restriction in recruiting foreign
teachers and the existence of government monopolies and high subsidization for
local institution.

In architectural and engineering services, for instance, it has been pointed


out that difficulties for foreign professionals could normally arise from non
recognition or limited acknowledgement of home country education, qualification
or accreditation of licenses. Other barriers include nationality and residency
requirements, restriction on incorporation, restricted eligibility for contracts
including government procurement contracts, and prohibition on advertising.
Sometimes, compulsory partnership with local professionals is required.

In the area of health and medical services, three types of regulation seem to
be particularly relevant as they may directly affect supply and demand. The first set of
regulations pertains to qualification and licensing requirements for individual health
professionals. The second category refers to approval requirements for institutional
suppliers such as clinics and hospitals. The third group includes rules and practices

Domestic Regulation and the Trade in Service 35


governing reimbursements under mandatory insurance schemes. Since health related
quality criteria may differ significantly between individual activities, members scope
for operating qualification and licensing requirements under these provisions could
be assessed on a case-to-case basis.

Recognition measures applying foreign licenses, qualification or standards


may determine the economic value of commitment under the GATS. Such measure
could affect the insurance portability or the possibility for the professionals working
abroad without undergoing additional test and examinations.

Regulatory barriers to trade in the legal profession consist of the following:


nationality requirement, restriction on their movement, restriction on legal forms
and restriction on foreign equity. Important national treatment limitation includes
restriction on partnership with local professionals, restrictions on the hiring of local
professionals, restriction on the use of international and foreign firm names,
residency requirements and in general, discrimination in the licensing process.

The above discussion gave us the key common barriers that need to be
threshed out if trade in services, particularly professional services will have to be
expanded. The need to hire foreign workers may be inevitable in a global
environment. Low unemployment rate, the booming need for workers with special
skills (particularly in the information technology industry) and the increasing
globalization and integration of multinational companies all contribute to the need
for foreign labor. Given these conditions, employers of all sizes and in any industry
may be confronted with the question of how to hire foreign nationals. Hence, looking
at these barriers and proposing possible solutions for their reduction and eventual
elimination may bring about a better and smoother trade in services.

DOMESTIC REGULATION AND INTERNATIONAL TRADE

The Role of Domestic Regulation under the General Agreement on Trade in Services
(GATS)

The process of liberalizing the services sector has been expanding in recent
years as the sector continues to account for more than 50 percent of production
and employment in most developed and developing countries. Over the years, the
traditional components of the sector such as transport, legal services, banking,
insurance and other financial services have been augmented to include new and
fast growing ones. Through the improvements in infrastructure and advances in
technology the sector has grown considerably with the contributions coming from
telecommunications, information and data processing and business services.

36 Education and Globalization


Notwithstanding its importance and impact on the economy, the services
sector has been neglected in economic analysis in the past due to its inherent
characteristics that make it difficult to trade internationally as compared with
merchandise goods. Services are (1) intangible, though often incorporated in
tangible products; (2) nonstorable; and finally, (3) involve a simultaneous action
between the service provider and the service consumer. (Stephenson 1999).

Unlike the production of goods, ownership of a service is not transferred


during the process of service provision. Thus, services cannot be stored, and this
inability means that services are produced and consumed simultaneously. In addition,
this characteristic of service transactions impacts on how international transactions
in services are conducted. If a service provider in one country can produce a desired
service, then he must interact with consumers in other countries to provide it. Thus,
the provision of services to foreign markets often necessitates the movement of
capital (through foreign direct investments) or labor (personnel to manage such
activities or to provide different types of expertise, including basic labor).
(Stephenson 1999)

International transactions in services have been defined according to four


modalities. These are (1) through cross border flows in which neither the supplier
nor the producer move physically but instead rely upon an intermediate service
such as a telecommunications network; (2) through the movement of a consumer
to a supplier’s country (such as tourism); (3) through the movement of a commercial
organization to a consumer’s country, which equates with foreign direct investments;
and (4) through the movement of an individual service supplier to the consumer’s
country. (Sampson and Snape 1985)

It is clear from the categories of international service transactions that trade


in services cannot be promoted without the willingness on the part of governments
to allow multiple modes of delivery, including the movement across national borders
of the services themselves, or service providers, or of consumer of services. (Low
1995)

Although these qualities have posed difficulties in coming up with a


multilateral set of rules similar to that of the GATT in the case of global trade in
merchandise goods, the growing importance of the services sector have altered
these notions and perceptions. In fact, this shift towards the importance of services
is viewed with optimism as a key solution to the growing problem of unemployment
and economic growth.

The GATS contained disciplines on policies, rules and regulations that


ensured the equitable trading of services across countries. Unlike trade barriers in
goods such as tariffs that can be settled at the customs, problems for the suppliers

Domestic Regulation and the Trade in Service 37


of services usually start beyond the border. The objective of GATS is to progressively
liberalize investments and services trading through a multilateral set of agreements
mandated to eliminate barriers and allow for a smooth trading environment
characterized by the absence of any discriminatory factor.

An important section in the general framework of rules and obligations of


the GATS is the article containing Disciplines on Domestic Regulations. Domestic
regulations are laws and policies that exist in an economy which recognizes the
right of a nation to preserve its sovereignty by influencing activities within its borders
especially with regard to matters of public safety and national security. It may also
be defined quite broadly to include all microeconomic government interventions,
from pollution control policy to implementing licensing procedures and technical
standards. While the GATS ultimately aims for the elimination of barriers in the
trade of services, these domestic regulations are subject to certain conditions. These
regulations should be “a) based on objective and transparent criteria, such as
competence and the ability to supply the service; b) not more burdensome than
necessary to ensure the quality of the service; and c) in the case of licensing
procedures, not in themselves a restriction on the supply of the service. “ (ART
VI:4). Article VI further gives special attention to qualification requirements and
procedures, technical standards and licensing requirements, all of which should
“not constitute unnecessary barriers to trade in services” (Art VI:4).

Article VII, on the other hand, encourages signatories to enter into mutual
recognition agreements. “For the purpose of the fulfillment, in whole or in part, of its
standards or criteria for the authorization, licensing or certification of service
suppliers… a member may recognize the education or experience obtained,
requirements met, or licenses or certification obtained in a particular country.”
Presumably, domestic measures that escape the scrutiny of national treatment and
Article VI(5) provisions will need to be dealt with through Article VI(4) or Article
VII(2). In effect, a strict reading of Article VI could eventually preempt the need
for treaty-based recognition (Nicolaidis and Trachtman 2000).

The Basis for Domestic Regulation

Economies vary in many dimensions including political systems, social norms,


and the cultural values of their people. It is these national differences that compel
nations to define the way how they should conduct their economic affairs through
domestic regulation. In the economic sphere, the overriding reason for government
regulation is the failure of the market system due to three major causes: exclusion of
markets, asymmetric information, and imperfect competition. Because of market
failure, there is a need to regulate the market to arrest the inefficiencies that may
result. But such corrections should be viewed together with their corresponding costs
(Rollo and Winters 1999). Aside from correcting market failure, another argument

38 Education and Globalization


supporting domestic regulation is for equity considerations. In the case of social
regulation, for example, individual companies may not take into account the full
social cost of their actions. Direct regulation represents one approach to the problem
of obtaining such information (Guasch and Hahn 1997).

From an economic perspective, regulations often limit the number of firms,


the number of people employed, the number of distribution outlets, the services
that can be sold, prices, marketing practices, and distribution channels. There are
regulatory measures that protect incumbent firms from domestic and foreign
competition. The rationale often cited for such intervention is the promotion of
public interest. Public interest demands that consumers are protected from the
shady practices associated with excessive competition, or consumers are assured of
a stable supply of reliable products at reasonable prices. Sometimes public interest
is served by protecting consumers from monopolistic elements in the market. In
some instances, regulation is based on industry rationalization or on the capacity of
a market to support only a limited number of providers.

Because of the welfare implications of regulating the economy, domestic


regulation should be transparent, predictable and nondiscriminatory in their
objectives and application. These qualities give the policy a certain degree of
predictability that economic players can take into consideration when making their
decisions. Moreover, it can reduce the scope of corruption in the application of
regulatory measures. These qualities can also reduce compliance cost and can
enhance the legitimacy of the regulatory agency. Regulatory bodies should be subject
to review and free from regulatory capture of interest groups. Predictability also
implies that responsibilities for ensuring the desired outcomes are clearly spelled
out.

In the course of regulating an economic activity, the problem of asymmetric


information can occur between the government and its implementing agencies.
The objectives and instruments of the regulator are typically analyzed using the
principal agent framework. This approach models both the internal and external
economic relations of the government as the central principal facing decentralized
agents, that is, policy departments or “purchasers” contracting with devolved agencies
and independent firms.

The model characterizes the principal as capable of defining the required


outputs but unable to achieve them by simple fiat. Instead, the principal has to
contract agents who are self-interested, and may well not share the principal’s aims.
In most cases the agents know more than the principal does, for example about
their costs or how much effort they are putting in and about the quality of the
output they are supplying. There is therefore, the problem of asymmetric
information. The government, being the regulator, has to try to specify incentive

Domestic Regulation and the Trade in Service 39


contracts to align the motives of the agent as closely as possible with the regulator’s
objectives.

At the level of economic transactions, the problem of asymmetric information


is particularly serious in the social sectors compared with the other sectors of the
economy. For example, in most utilities, consumers and independent monitoring
agencies can gather sufficient and pertinent information regarding the service they
are getting. In addition, defining what constitute a good service in the sector is a
relatively simple activity. However, in the social sectors, consumers tend to be more
vulnerable and less informed compared with the well-informed professional providers.
The extent of addressing this asymmetric information is a matter that can be influenced
by policy, but still a substantial amount of information will remain solely in the hands
of the service providers. Furthermore, difficulties of monitoring providers’ behavior
imply that contracting systems in social sectors tend to generate higher transactions
processing and monitoring costs. Thus, treating situations with asymmetric
information, the mandatory disclosures, liability insurance requirements and other
labeling techniques may be prescribed to make the information more even to all
economic actors (Rollo and Winters 1999).

A second relevant problem is the higher level of uncertainties that tends to


prevail in the social sectors. These uncertainties are further exacerbated by the
presence of high externalities. For these reasons, governments establish rules and
policies for licensing and technical standards.

Many transactions pose risks for consumers. In an attempt to control such


risks, governments will require sellers to be licensed or alternatively, certified or
registered, by some public or private body. Licensing covers a broad range of regulatory
activities with a primary task of setting standards governing the practice of professions
to weed out the “unfit” or “unsafe.” Specific activities in licensing procedures include
among others defining the scope of the license, setting minimum criteria, identifying
the best applicant, and determining the length of retaining the license for the best
applicant.

Thus, domestic regulation is meant to reduce, if not avoid risk, in the light of
asymmetric information, high degree of uncertainty, and the presence of externalities.
In such a situation, the option of labeling may be considered as an appropriate
regulatory measure. The cost of insurance may be sufficient against loss resulting
from taking unwarranted risks and product liability. However, in an environment
where there is incomplete information, economic players may take too much or too
little risk since the estimate on the probability distribution is less accurate compared
with risky activities associated with known probabilities(Rollo and Winters 1999).

40 Education and Globalization


While licenses are difficult or costly to employ making them an implicit
barrier to entry that limits market competition, increases the price, and reduces
consumer choice, it may, on the other hand, serve to enhance service quality. One
of the most common ways in which a regulatory agency affects the behavior of firms
is through formal standards or mandates about how or how much a particular activity
may be done. Standards are aimed at objectives as diverse as increasing workplace
and product safety, producing a cleaner environment, and providing consumers
with better information. They may be enforced through criminal sanctions,
withdrawal of a license, civil fines, or adverse publicity. Performance and specification
standards, for example, prescribe some level of attainment for a particular aspect
of a service.

Current public discussions on international competitiveness place a new


emphasis on the impact of regulatory change on the trade balance. A rise or fall in net
exports is treated as a significant advantage or a disadvantage for any regulatory policy.
Moreover, domestic regulation is often blamed for the secular decline in trade
performance.

The claim that domestic regulation affects trade performance may seem
plausible. Much regulation does indeed raise domestic firms’ costs. Quality, safety,
and environmental regulation, for example, typically require specific capital
investment and/or changes in production techniques. Even traditional price and
entry regulation, with no direct control over production methods, can involve
administrative, legal, and managerial costs, as well as downstream factor input
distortions. At least in the long run, such regulatory measures result in inward shifts
in the cost schedules that may affect the firm’s entry in international marketplaces.
While such shifts may be warranted on grounds of economy-wide domestic optimality,
they will tend to hurt the trade performance of affected firms.

Studies have documented that the indirect impacts of regulations are


nontrivial and have forced some firms to divert resources from production of tangible
output towards making production safer or cleaner or satisfying regulators. To some
extent, regulation has contributed to a slowdown in productivity growth; others
have blamed it for reductions in the rate of technological innovation.

There are two reasons for inefficient regulation. One is economic and the
other is political. The economic reason is that it is difficult for a government authority
to regulate because it lacks the necessary information. The firm usually is better
informed than the regulator; however, it rarely has an incentive to tell the regulator
all it knows. Such information asymmetries imply that economic regulation will
rarely achieve an efficient outcome. That does not mean that regulation is not a
useful approach for increasing economic efficiency when an industry is subject to
increasing returns to scale or there are network externalities. It does mean, however,

Domestic Regulation and the Trade in Service 41


that the effectiveness of regulation is limited and that it has some serious structural
defects (Guasch and Hahn 1997).

Similarly, the regulator imposing social recognition must frequently base


decisions on very limited information (Lewis 1996). Political problems with regulation
also lead to inefficient economic results. Since regulation redistributes resources
and rents, politicians often use it to secure political gains rather than to correct
market failures. A larger array or regular instruments such as quotas, licenses, and
subsidies are used to transfer significant amounts of wealth from consumers to small
groups of producers (Guasch and Hahn 1997).

That regulation is expensive or that it may have important indirect effects


does not mean, however, that it is “not worth it.” In principle, regulation comes with
full knowledge that it often carries a steep price. But regulation can confer important
benefits.

If we lived in a world where we were perfectly and costlessly informed about


all the risks that confront us in product or labor markets and if we were capable of
flawlessly analyzing all these information, then health and safety regulation would
be unnecessary. Consumers and workers would demand compensating differentials
before they would bear any risk, and producers and employers would then have
incentives to provide services or provide working conditions of optimal safety. In
the real world, however, the underproduction of information in markets, information
asymmetries, and the bound rationality of transactions often make such regulation
desirable.

Formulation of Public Policy and Government Regulation

In the continuing debate over the competitiveness of nations, the focus of


discussions is on the role of the government in economic activities. Many see
government as an essential supporter of industry, employing a host of policies to
contribute directly to the competitive performance of strategic or target industries.
Others, on the other hand, view that the operation of the economy should be left
to the workings of the market with no interference from government.

Both views have their own inadequacies. On one hand, advocates of


government support for industry frequently propose policies that would actually
hurt companies in the long run and only create the demand for more assistance.
On the other hand, advocates of a diminished government presence ignore the
legitimate role that government plays in shaping the context and institutional
structure surrounding companies and in creating an environment that simulates
companies to gain competitive advantage.

42 Education and Globalization


Government regulation of economic activities is typically divided into three
classifications: antitrust policy, economic regulation and social regulation. Antitrust
policy aimed at preserving competitive vigor in the economy as a whole; economic
regulation, concerned with pricing and output decisions in specific industries; and
social regulation, aimed at securing various social goods such as a cleaner
environment and safer products and workplaces.

Antitrust policy applies broadly to all industries, although a few have


obtained partial exemptions from its restriction. At its core, antitrust is a consumer
protection policy. It seeks to protect consumers (and society) from the consequences
of anticompetitive or monopolistic behavior: restricted output, prices above costs,
and a misallocation of resources. The application or threat of antitrust enforcement
can alter the number of firms in a market, affect their pricing and output decisions,
alter conditions of market entry or exit, and affect marketing practices.

Economic regulation, on the other hand, has often been motivated by a


view that some markets are inherently noncompetitive. It is utilized as an alternative
since antitrust policy is not the appropriate corrective measure. Typically, such
regulation involves government licensing of a limited number of (private) sellers in
exchange for the sellers’ submission to the strict price regulation by a (public)
commission or an authority. Frequently, such regulation is extended to other
dimensions of the product, such as service quality, or even to the sellers’ decisions
about how to produce the product.

Social regulation is not directly concerned with the pricing or output


decisions of firms or industries but with controlling what are seen as undesirable
consequences of firm behavior. While economic regulation typically has a massive
effect on the firms within one particular industry, social regulation applies to many
firms scattered across the whole economy. Social regulation has broad power to
alter firm behavior, from hiring practices to production decisions to marketing
strategies. Much social regulation is based on the belief that even where competitive
pricing prevails, some market outcomes will require correction. Even competitive
firms, e.g., may pollute excessively or expose their workers or customers to
unnecessary risks.

In the Philippine context, regulation can be viewed in the way laws are
formulated, administered and interpreted. In principle, the legislative branch makes
law, the executive branch administers and enforces them, and the judiciary interprets
laws and gives them meaning. But these generalizations obscure the awesome
complexity of the interaction among the branches of government. Each branch
affects the behavior of the others, and in many cases, areas of responsibility overlap
or conflict. Judges frequently make law as well as interpret it.

Domestic Regulation and the Trade in Service 43


Individuals who run agencies in the executive branch must be confirmed,
and legislative committees can inquire quite forcefully into the performance of
these individuals once confirmed. Many acts of Congress, on the other hand,
originate from the actions of, or in response to actions of, other branches of
government. But this apparent confusion of roles is by design a part of the system
of checks and balances that limit the coercive power of each branch. All three
branches are heavily involved in the business of regulation.

Administration of economic and social regulation is similarly complex. Most


such regulation originate with a congressional statute, but the language of such
statute is often quite vague, and it is up to the various federal regulatory agencies
(and the courts) to give these statutes practical meaning.

The cost of regulation or the costs of carrying out a given regulatory policy
have real economic costs. At their normative best, these costs are akin to market
transaction costs. They are the resource expenditures incurred to achieve a resource
reallocation through nonmarket means. At their worst, they represent welfare
worsening reallocations and or nonproducing rent seeking activities. In either case,
they represent social expenditures to be minimized.

Evaluation of the Rules on Domestic Regulation under the GATS

Strengthening Article VI of the GATS on Regulation

Article VI of the GATS provides a basic framework for minimizing the trade
restrictions created by domestic regulations. A strengthening of this article could
go a long way in facilitating real market access liberalization by committing countries
to the reform of regulations that impede market-oriented competition. Article VI
now provides that (a) regulations be administered in a reasonable, objective and
impartial manner; (b) countries establish procedures for the review of regulations
at the request of service suppliers; (c) regulations be based on objective and
transparent criteria, not more burdensome than necessary to ensure the quality of
the service, and in the case of licensing procedures, not restrict the supply of the
service.

Article VI can be expanded to cover the scope of transparency stated in


Article I by requiring members to explicitly state the public policy objective served
by a regulation. This would facilitate any examination of whether the regulation is
“more burdensome than necessary to ensure the quality of the service,” as provided
in Article VI (4) (b).

44 Education and Globalization


An interpretation of Article VI could also clarify that the words “quality of
service” in VI (4) (b) refers not only to the reliability of the service from the
perspective of an individual consumer, but that they also encompass regulations
aimed at the achievement of the full range of social objectives, including safety,
integrity of networks, providing service to underserved regions or population
segments, etc. This broader interpretation of the term quality of service is consistent
with the overall thrust of Article VI but is not necessarily clear if the sentence involved
is taken by itself, outside the broader context of Article VI as a whole.

The inclusion on a new provision in Article VI is recommended that would


encourage members to limit the scope of regulations to what is necessary to achieve
the objective served by the regulation. This would be fully consistent with and would
amplify the spirit of the requirement that regulation not be more burdensome
than necessary to ensure the quality of service. Countries would be encouraged to
regulate only those activities that have a direct bearing on a regulatory objective
and not seek to regulate ancillary activities carried out by the same firm. Such a
provision, for example, would encourage countries to limit their regulation of
infrastructure services to the term of access to physical infrastructures such as
pipelines and electric transmission lines, leaving it to competitive suppliers to decide
what services to provide over the network at what prices.

Another addition to Article VI should include a provision that would


encourage countries to adopt performance-oriented regulations rather than
regulations that directly seek to establish bureaucratic control over the specific
activities carried out by enterprises. Such a provision would parallel a similar
provision embedded in the GATT Code on Technical Barriers to Trade and would
also be fully consistent with and amplify GATS Article VI (4) (a), which requires
regulations to be based on objective and transparent criteria.

Another possible addition could encourage member countries to use


market-based incentives and disincentives to achieve the desired social objectives
with greater economic efficiency than directive regulations that seek to control the
behavior of the market participants. For example, it would be far more efficient in
economic terms to allocate scarce resources such as landing slots through an auction
than through a system of licensing that benefit the incumbents.

Finally, Article VI could encourage self-regulation by industry that satisfies


the achievement of the desired social objective. At the same time, it should require
member governments in such cases to ensure that compulsory private regulator or
standard-making activities are open to all service providers, including foreign service
providers.

Domestic Regulation and the Trade in Service 45


The Sectoral Negotiations

In some heavily regulated sectors, some degree of international rule making


on a sectoral basis is inevitable, particularly where the regulation specifically limit
competition or competitive entry, or where the regulations set high performance
standard for service providers. Countries where regulations permit open entry and
competition are concerned about market access condition in countries that limit
competition. Countries with strict performance standard are reluctant to open entry
to foreign firms that are not required to maintain adequate performance standards
by their own governments. International trade and competition in these sectors
may therefore require some degree of international understanding on the allowable
forms and extent of competition, and of the minimum performance standards that
should be met.

It would be a mistake, however, for the WTO to establish highly detailed


disciplines. It needs to take to heart the principle of subsidiarity, and avoid excessive
rule making. As was the case in the GATT treatment of standards, the WTO should
focus on establishing legally binding obligations centered on some key principles
and procedures while leaving much of the substantive detail to other international
organizations, national governments, and voluntary private bodies. This calls for
judicious blend of legally binding obligations on key principles, voluntary guidelines
that could serve as reference points for international regulatory norms, and
references to standards and work carried out in other public and private
organizations.

Efforts to create sectoral guidelines for the liberalization of trade in


professional services have focused on the development of a model agreement for
accounting services. These negotiations are still under way, with a December 1997
target date. The basic goal of these negotiations is to expand on the provisions
contained in Article VI (4) of the GATS. Negotiators are focusing, in particular, on
three criteria built into this provision. Regulations must be based on objective and
transparent criteria, they must not be more burdensome than necessary to ensure
the quality of the service, and any licensing procedure in itself must not restrict the
supply of the service.

The basic issue for governments in accounting, as in other professional


services, is to ensure the professional competence of the individual service provider,
monitor professional performance, and disciplines any lapses on professionalism.
From a trade point of view the key issues are whether the standard and procedures
adopted by individual governments constitute unreasonable barriers to the trade.
This can be the case if the standards or procedure establish for evaluating a provider’s

46 Education and Globalization


qualification unnecessarily discriminate against foreign practitioners or unnecessarily
restrict entry by both domestic and foreign applicants.

In most cases the qualifications, regulations and procedures established


for the licensing of the country’s own professionals cannot be directly transferred
to the licensing of foreign professionals. Foreigners do not necessarily enter as
apprentices, they may not have acquired a local educational degree, their
professional experience abroad may or may not be directly relevant, and the fact
that they may not permanently reside within the country may require alternative
approaches for disciplining unprofessional behavior. The establishment of a separate
set of regulations and procedures for qualifying and licensing foreign professionals
may thus actually facilitate trade. In fact, Article VI(6) directs members to establish
procedures to verify the competence of professionals from other member countries.
Thus GATS implicitly recognized the need for a specific procedure in licensing to
license foreign practitioners. Although this may facilitate trade, it has the potential
for violating the principle of national treatment because of separate rules for
domestic service providers and for foreign service providers.

The issue from a trade point of view is whether the qualifications, regulations,
and procedures established for foreign professionals are equivalent in their regulatory
effect and not more burdensome than the procedures and standard imposed on a
country’s own professionals. Any rulemaking under the GATS needs to establish
basic principles concerning the objectivity and equivalence of both qualifications
and procedures established for licensing foreign professionals. They should not get
into substantive details, which are better addressed through bilateral agreements (as
provided for in Article VI of the GATS) or international standards developed through
the appropriate international professional association (as provided for in Article
VI(5) (6) of the GATS).

Nondiscriminatory standards and procedures for ensuring the professional


competence and professional performance of accountants can become barriers
over time to entry if they are used to limit entry into the profession and thereby
raise the income of current members. The second issue from a trade point of view,
therefore, is whether a country’s regulations for the licensing of professionals are
an appropriate means to achieving legitimate social objectives and whether they
are not more cumbersome or restrictive than necessary to achieve that objective.

The best method of ensuring that professional licensing and qualification


standards and procedures do not restrict competition is to require full transparency
of both the regulatory objectives and the regulations. The rule should also stipulate
that regulations achieve their stated objectives in the least burdensome manner.
Transparency will enable anyone to test whether the objectives are legitimate and
whether the regulations involved provide the least burdensome and employ the least

Domestic Regulation and the Trade in Service 47


trade distorting method of accomplishing the objective. It may also be helpful to
establish the link to establish international standards in the field by encouraging
member to make use of applicable international standards. In most professions,
international professional bodies have emerged for the development of standards.
The GATT Code on Technical Barrier to Trade has a similar approach and
encourages by encouraging countries to adopt international standards with which
to measure the desired level of performance.

Disciplines on Domestic Regulation in the Accountancy Sector

Elements, Conditions and Disciplines in the Practice of Accountancy

The creation of the Disciplines on Domestic Regulation in the Accountancy


Sector by the Working Party on Professional Services of the WTO marked the
beginning of the development of GATS disciplines on the domestic regulation of
services. It contains provisions for the transborder practice of accountancy in
accordance with Art IV:4 of the GATS, where regulatory requirements set by host
countries should be based on objective and transparent data and should not be
more burdensome than necessary to meet regulatory objectives. In addition to
objectives and general provisions, the disciplines include detailed guidelines on
transparency, licensing and qualification requirements, procedures and technical
standards.

With regards to transparency, the disciplines require each member to make


available to those concerned all information including the names and addresses of
local authorities responsible for the licensing of professionals, a list of all necessary
requirements, procedures and technical standards on how to obtain, renew or retain
licenses and other administrative reviews and procedures. Reasons of such
regulations should also be available upon request of other members, whose views
regarding these regulations should be accommodated.

Requirements in to licensing should be pre-established and objective based


on the provisions set by Art VI:4. The terms and conditions set relating to acquiring
or maintaining licenses should be kept at a minimum trade-restricting level, taking
into consideration factors such as costs and local conditions. When membership to
a professional organization is required, the terms and conditions set by members
should be reasonable and should not include any precondition to meet legitimate
objectives. Furthermore, the required period of membership, when it is a prior
condition to get a license, should be kept at a minimum.

Licensing procedures should be pre-established, publicly available and


objective, and shall not in themselves constitute a restriction on the supply of the
service (Art IX:1, Disciplines on Domestic Regulation on the Accountancy Sector).

48 Education and Globalization


As provided for in Art VI:4 of the GATS, these procedures “should not be more
burdensome than necessary to meet the regulatory objective.” Members should
ensure that any procedure relating to acquisition of a license be pursued at the
least burdensome manner possible, for instance, documents required by licensing
authorities should not exceed the number required necessary to obtain the license,
applicants should be given the opportunity to correct errors made in completing
the applications, authenticated documents should be accepted in place of the
original documents, and the process of authenticity by local authorities should be
simple. Applicants are to be informed without undue delay if application
requirements are incomplete, and reasons for rejection should be available upon
request by the unsuccessful applicant.

Qualification requirements should be set on the basis of “... equivalency of


education, experience and/or examination requirements.” (Art X:1, Disciplines
on Domestic Regulation on the Accountancy Sector). Examinations prepared by
local authorities are limited only to activities relevant to seeking authorization. These
requirements “... may include education, examinations, practical training,
experience and language skills.” (Art X:1, Discipline on Domestic Regulation on the
Accountancy Sector). Mutual recognition agreements (MRAs) may be used by members
in expediting the process of qualifications verification and in instituting standards
for equivalency of education.

Qualifications verification shall take place within six months and applicants
shall be informed of any additional requirements. Examinations are to be scheduled
at least once a year, and shall be open to all suitable applicants, including foreign
and foreign-qualified applicants. Examination fees should represent administrative
costs involved, including those for verification of information and processing, and
should not in themselves, serve as a restriction. Compromise fees for applicants
from developing countries may be adopted.

Technical standards adopted should be utilized only to fulfill legitimate


objectives. Internationally recognized standards of relevant international
organizations shall account for these obligations to ensure that they are formulated
in accordance to the obligations of each member under the GATS.

Various Perspectives in the Formulation of the Disciplines in the Practice of


Accountancy

Some countries have commented on the disciplines. In the case of Japan, it


has raised several concerns regarding the contents of the document. For example,
in the case where subfederal governments, such as in provinces or states, are able to
establish regulations containing different criteria, certain disciplines should be set

Domestic Regulation and the Trade in Service 49


up to encourage members to harmonize, as far as possible, these regulations by applying
the most liberal of established regulations.

A more specific concern is the modification of the term “license” to read as “license
or registration” in order to reflect the system or practices of each member country.
In Japan, lawyers (bengoshi) and foreign legal consultants (gaikokuho-jimu-
bengoshi) are only subject to the registration system once the qualification
requirement has been cleared and not to licensing procedures. The processes
required to have a qualification is a bar examination for lawyers (bengoshi) and a
simple screening of a foreign legal consultant (gaikokuho-jimu-bengoshi) provided
there is approval by the Ministry of Justice. As this does not lead to obtaining a
license, it is not right, as far as Japan is concerned, to use the term “license” when
referring to those legal services.

Thus, it is not appropriate to introduce any expression that requires an examination


as a precondition. In Japan, an examination is not imposed on foreign consultants
(gaikokuho-jimu-bengoshi) as a qualification requirement. In addition, Japan does
not see the rational for requiring an individual to be a member of a professional
organization before applying for a license.

Moreover, Japan feels that it is not necessary to establish a system “to inform another
member, upon request, of the rationale behind domestic measures.” Once the system
of securing transparency of domestic regulations among member countries has
been established, this additional obligation may increase the unnecessary
administrative burden.

Australia, on the other hand, believes disciplines developed in accordance with


Article VI should apply to all sectors, with the effect of those disciplines building up
as members expand the scope of their scheduled commitments.

Members need to establish what would constitute a necessary barrier to trade in


services. Article VI:4 does not define legitimate objectives, apart from the reference
to “not more burdensome than necessary to ensure the quality of the service.” The
accountancy disciplines (in Section II, paragraph 2) specify four legitimate objectives:
protection of consumers; the quality of the service; professional competence; and
the integrity of the profession. Further work on legitimate objectives in domestic
regulation should build on those definitions. “Quality” could be interpreted broadly
enough to cover reliability, efficiency, comprehensiveness and other like concepts.

Other concepts could be added as the Working Party develops its thinking on the
subject. The Working Party could, for instance, review the continued use of
nationality or permanent residency requirements as a condition for meeting

50 Education and Globalization


qualification and licensing requirements for service providers. In addition, the
Working Party might seek to examine a framework of good administrative practice,
possibly by trying to give more specific and practical application to the scope of
legitimate public policy objectives in regulatory field.

The United States believes that members should develop disciplines on transparency
in services that are at least as comprehensive as those prevailing in WTO agreements
on trade in goods.

Existing GATS obligations on transparency are weaker than similar provisions in


the WTO Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS)
Agreements and in the generally accepted Accountancy Disciplines. They do not
establish a regular, formal system of notification. Rather, they consist only of an
obligation to publish (and not necessarily before they are effective) or otherwise
make publicly available measures affecting trade in services, and establish inquiry
points that will provide, upon request, specific information on a member’s regulatory
measures or other international agreements to which it is a party.

The GATS also contains two exceptions from general transparency obligations.
Article IIIb exempts members from providing confidential information, the
disclosure of which would impede law enforcement, otherwise contrary to the public
interest or which would prejudice the legitimate commercial interest of public or
private enterprises. Article XIVbis, paragraph 1(a) exempts members providing
information which they consider contrary to essential security interests. Members
should note that future disciplines on transparency should not be construed as
affecting operation of these GATS articles.

With regards to applying regulations, where a license or qualification is required to


provide a service, members should address obligations to specify and make publicly
available measures relating to the criteria to obtain such a license or qualification
and the terms and conditions under which it is offered or revoked.

Where feasible, it would also be appropriate to make administrative licensing


procedures publicly available. Coverage of such procedures could include, by way
of example, information specifying the period of time normally required to reach a
decision on a complete, uncontested application for a license or authorization to
provide a service; descriptions of the nature and extent of disciplinary actions; and
the notification relating to reasons for denial or revocation of a license or
authorization.

Implementation of these transparency measures should also include making


publicly available the names, official addresses and other contact information
(including website, telephone, facsimile) of competent authorities.

Domestic Regulation and the Trade in Service 51


COMMISSION ON HIGHER EDUCATION

Legal Basis

The Commission on Higher Education (CHED) was created under RA 7722


in 1994 as a separate and independent agency from the Department of Education
Culture and Sports (DECS). As an offshoot of the trifocalization in the educational
reforms in the early 1990’s, CHED was assigned the responsibility to oversee the
system of higher education in the country and to formulate policies, plans and
programs for the development of public and private higher education institutions.
Although an independent agency, it is attached to the Office of the President for
administrative purposes.

The Commission is composed of the following offices: Board of Advisers,


Office of the Commissioners, Office of the Executive Director, Regional Field Offices
and Technical Panels.

The Board of Advisers is composed of the DECS Secretary as Chairman


and the NEDA Director-General as Vice Chairman. The other members are the
DOST Secretary, DTI Secretary, DOLE Secretary, President of the Federation of
Accrediting Agencies of the Philippines, President of FAPE and additional two
members.

The Office of the Commissioners is composed of five full time commissioners


headed by a Chairman.

The Executive Director heads the Secretariat that implements the plans
and policies of the Commission. It coordinates the activities and projects of the
various offices including the Higher Education Development Fund, International
Affairs, Administrative and Finance Service, Legal Affairs Service, Programs and
Standards, Policy and Planning, Research and Information and Student Services.

There are 15 regional field offices headed by regional directors. These


offices are the implementing units of the Commission in the different regions of
the country.

The technical panels set the standards for various clusters of disciplines.
The panels are composed of senior specialists or academicians and experts from
the academe, government, industry and professional societies/associations.

Higher education institutions (HEIs) in the country maintain their own


internal organizations. The framework of such organization is generally divided
into two areas: policy formulation and policy implementation. The formulation and

52 Education and Globalization


approval of all policies, rules and standards in the institutions are undertaken their
respective Board of Regents or Board of Trustees; whereas the implementation of
policies on the management of the institution is vested on the president or chief
executive officer.

Publicly-funded state universities and colleges (SUCs) are established by


legislation that define their institutional charters. They are authorized to award
degrees or open new courses upon approval of their respective Board of Regents.
Because of SUCs autonomous charters, CHED has no direct supervision and control
over them. However, to align the programs of SUCS with CHED’s policies and thrusts,
the chairmanship of the Board of Regents of all state universities and colleges is
given to the Chairman of the Commission of Higher Education or his/her
representative as provided for under RA 8292 (1997).

Private HEIs, on the other hand, are organized and governed under the
Corporation Code. The Commission on Higher Education has extensive power
over these private institutions in terms of regulation on the establishment or closure
of private schools, program and course offerings, curricular development, the setting
of school calendar, building specifications and determination of tuition fees. A
degree of freedom is granted to private schools that have attained Level III
accreditation.

Powers and Functions of CHED

Under Section 8 of RA 7722, the Commission has the following


powers and functions:

a. Formulate and recommend development plans, policies,


priorities, and programs on Higher Education;
b. Formulate and recommend development plans, policies,
priorities, and programs on research;
c. Recommend to the executive and legislative branches,
priorities and grants on higher education and research;
d. Set minimum standards for programs and institutions of
higher learning as recommended by a panel of experts in
the field and subject to public hearing, and enforce the
same;
e. Monitor and evaluate the performance of programs and
institutions of higher learning for appropriate incentives
as well as impose sanctions such as, but not limited to,
diminution or withdrawal of subsidy, recommendation on
the downgrading or withdrawal of the accreditation,
program termination or school closure;

Domestic Regulation and the Trade in Service 53


f. Identify support and develop potential centers of
excellence in program areas needed for the development
of world-class scholarship, nation building and national
development;
g. Recommend to the Department of Budget and Management
the budgets of public institutions of higher learning as well
as general for the use of their income;
h. Rationalize programs and institutions of higher learning
and set standards, policies and guidelines for the creation
of new ones as well as convert or elevate schools to
institution of higher learning, subject to budgetary
limitations and to the number of institutions of higher
learning in the province or region where creation,
conversion or elevation is being sought;
i. Develop criteria for allocating additional resources such as
research and program development grants, scholarship, and
other similar programs: Provided that these shall not detract
from the fiscal autonomy already enjoyed by colleges and
universities;
j. Direct or redirect purposive research by institutions of
higher learning to meet the needs of agro-industrialization
and development;
k. Devise and implement resource development schemes;
l. Administer the Higher Education Development Fund, as
described in Section 10 of RA 7722, which will promote
purposes of higher education;
m. Review the charters of institutions of higher learning and
state universities and colleges including the chairmanship
and membership of their governing bodies and
recommend appropriate measures as basis for necessary
action;
n. Promulgate such rules and regulation and exercise such
other powers and functions as may be necessary to carry
out effectively the purpose and objective of this Act; and
o. Perform such other functions as may be necessary for its
effective operations and for the continued enhancement,
growth and development of higher education.

Regulatory Powers of CHED

A number of the powers vested on CHED are regulatory in nature including


setting minimum standards for programs and institutions, monitoring, evaluating

54 Education and Globalization


and imposing sanctions on the performance of programs and institutions and setting
standards, policies and guidelines on the rationalization of programs and institutions.
Some of the specific regulatory powers that may impact on our GATS commitments on
trade in professional services include, among others, the entry of foreign students,
establishment of foreign linkages, entry of foreign professors, accreditation of
academic units, establishment of schools and branches, qualification requirements
for foreign students and tuition fees for foreign students.

Entry of foreign students

CHED Memorandum Order (CMO) No. 53, series of 1997 dated October 24,
1997 enumerates the procedures for the acceptance of foreign students in tertiary
level. The order provides that any Philippine school whose programs are recognized
by the CHED and approved by the Commission on Immigration in accordance with
Section 69-f of CA NO. 163, as amended by RA Nos. 118, 134,144.749, and 827 are
authorized to accept foreign students.

On September 2000, Executive Order (EO) 285 was issued amending the
rules and regulations governing the admission and stay of foreign students in the
country. In addition, the EO was issued to promote the country as a center for
education in the Asia-Pacific region. An interagency committee on foreign students
composed of various agencies including the Commission on Higher Education
(CHED), Department of Foreign Affairs (DFA), Bureau of Immigration and
Deportation (BID), National Bureau of Investigation (NBI), and the National
Intelligence Coordinating Agency (NICA) was tasked to issue a memorandum order
on the implementing guidelines of EO 285.

Among the highlights of the implementing order include:

a. Only schools with programs accredited by the Federation of


Accrediting Agencies of the Philippines (FAAP) or with
equivalent accreditation by the Commission on Higher
Education (CHED) and the Bureau of Immigration and
Deportation (BID) are authorized to admit foreign students.
b. The BID will publish an updated list of schools in consultation
with CHED.
c. Schools authorized to admit foreign students should establish a
Foreign Student Unit that will submit reports to CHED regional
offices and the BID on the enrollment of foreign students and a
status report on students that will include those who are missing,
have transferred, failed to take the final examination, dropped
from the rolls or with derogatory records. Failure to comply is a

Domestic Regulation and the Trade in Service 55


ground for the cancellation of the authority to admit foreign
students.
d. The information submitted will be used by concerned agencies
to monitor the activities of foreign students. The BID shall
investigate, apprehend, and prosecute foreign students who
violate the country’s immigration laws and regulations.
e. Foreigners holding tourist visa are allowed to convert their
admission status to student visa or special study permit.
f. Certain categories of aliens do not require student visas or
special student permits:

• Tertiary enrollment in Philippine schools of the


spouses and unmarried dependent children
below 21 years old of permanent foreign
residents, aliens with valid working permits,
personnel of foreign diplomatic and consular
missions residing in the Philippines, personnel
of duly accredited international organizations
residing in the Philippines, holders of Special
Investor’s Resident Visa (SIRV) and Special
Retirees Resident Visa (SRRV) and foreign
students in the Philippines with 47 (a) (2) visa

• Children of the above mentioned admission


category holders who are already enrolled before
their marriage and or before reaching the age
of 21 shall be allowed to convert their admission
category to that of student visa to enable them
to finish their studies

• Spouses and children of personnel of foreign


diplomatic and consular missions and duly
accredited international organizations located
in the Philippines who desire to remain in the
country to enroll for the first time or finish their
studies higher than high school and qualify
under prescribed regulations can be allowed to
convert their admission category to that of a
student visa.

Schools that are not yet accredited are given a one-year grace period to apply
for accreditation. They are required to have their programs recognized by the CHED.
To be recognized, they must have achieved the requirements beyond the “permit”

56 Education and Globalization


authority granted to operate academic programs. Failure to have their programs
accredited will force these schools to transfer their foreign students to another
accredited institution.

Applicants from other countries follow stringent steps before they are
accepted as foreign students.

Once the applicant is admitted into his desired course of study, the school
shall issue him A Notice of Acceptance (NOA). The school may, however, require
him to submit in advance a Certificate of Eligibility for Admission (CEA) issued by
the CHED for certain courses of study, such as medicine and nursing, where
restrictions on the enrollment of foreign students may exist due to the shortage of
facilities. Once issued, the certificate remains valid for the duration of his course,
provided the student attends his classes and receives satisfactory grades.

A foreign student desiring to study in the Philippines shall communicate


directly with the Philippine school he/she wishes to enroll in and shall comply with
the school institutional requirements, which include the submission of the following
documents: Original copy of the student’s personal history statement; documentary
proof of adequate financial support to cover expenses for the student’s accommodation
and subsistence, as well as school dues and other incidental expenses; and scholastic
records.

When the school is satisfied with the student’s compliance with its
requirements, it shall issue a NOA. The required documents should be hand carried
to the DFA by the school’s designated liaison officer for the issuance of a student
visa. The DFA endorses the documents to the Philippine Foreign Service Post
located in the student’s country of origin or legal residence for the issuance of a
student’s visa after ascertaining the student’s identity and admissibility under existing
DFA regulations. Upon approval of the issuance of student visa, the DFA informs the
school concerned, copy furnished CHED, on the action taken. When the foreign
students arrive, the school assists them in securing an Alien Certificate of Registration
(ACR) and Certificate of Residence for Temporary Student (CRTS) from the Bureau
of Immigration.

There are responsibilities and tasks assigned to schools and government


agencies involved in the process of accepting foreign students into the country.

For Higher Educational Institutions (HEIs)

• Accept and initially evaluate authenticated Transcript of Records


and Personal History Statements (PHS) of the applicants;

Domestic Regulation and the Trade in Service 57


• Send Notice of Admission (NOA) to DFA together with the Transcript
of Records, Affidavit of Support and Personal History Statement;
• Assist foreign students upon arrival in securing an Alien Certificate
of Registration for Temporary Students (CRTS) from the Bureau of
Immigration;
• Submit the necessary regular reports to the CHED and BID on the
status and academic performance of accepted foreign students; and
• Send reports to the BID, the NBI and the NICA, copy furnished
CHED, foreign students with derogatory records, those who dropped
out or failed to take the final examination for the term and those who
have completed their courses.

For the Commission on Higher Education (CHED)

• Prepares periodically, an updated list of each school with its


corresponding courses under recognition status to be submitted
to the members of the interagency Committee on Foreign Affairs
and the school authorized to admit foreign students;
• Issues the Certificate of Eligibility for Acceptance (CEAs) for
courses like dentistry and medicine;
• Requires schools to submit enrollment list of foreign students
together with a report on promotions and graduates;
• Supports NBI, BID and NICA on action taken against foreign
students with derogatory records; and
• Monitors schools with foreign students to countercheck their
enrollment list submitted by the school.

For the Department of Foreign Affairs (DFA)

• Accepts recommendations from school for student-visa


applications;
• Approves or denies application based on the documents submitted;
• Sends notice of approval/denial to school copy furnished CHED;
• Advises student to register with the BID, upon arrival in the country;
and
• Provides CHED, NICA, and BID, with an updated list of foreign
students granted with student visas at the end of each school term.

58 Education and Globalization


For the Bureau of Immigration and Deportation (BID)

• Issues ACR and CRTS to foreign students upon arrival in the


Philippines;
• Reports to CHED on schools that tolerate the continued stay of
foreign students upon arrival in the Philippines; and
• Investigates, apprehends and prosecutes, if necessary, foreign
students who do not comply with or violate Philippine Immigration
Laws and Regulations.

For the National Intelligence Coordinating Agency (NICA)

• Maintains a list of foreign students in the Philippines as provided


by the schools; and
• Coordinates and checks whenever necessary the activities of other
intelligence agencies regarding the activities of foreign students
brought to their attention.

For the National Bureau of Investigation (NBI)

• Checks and investigates wherever necessary the activities of foreign


students brought to their attention which appear to be inimical to
the security of the state;
• In coordination with the BID, apprehends foreign students not
complying with Philippine immigration laws and regulations.

A decreasing trend in the number of foreign students has been noted from
school year 1994-1995 to 1998-1999 (See Table 3.1). A 10.2% increase was observed
in school year 1995-1996 when enrollment reached 5284 students. In subsequent
years, foreign student enrollment has steadily declined.

In terms of nationality, Americans outnumber the rest accounting for 24.5 %


of the total enrollees for 1998-1999. Other nationalities with significant presence in
our HEIs are Koreans (19.23%), Chinese (16.35%), Taiwanese (7.54%) and
Indonesians (3.64%).

In terms of academic program, medicine and health related courses appear


to be the most popular among foreign students, registering 1,188 enrollees in 1998-
1999 or 33.79% of all foreign students. Other popular programs among foreign
students are arts and sciences courses (24.94%), graduate studies (12.26%), and
business courses (11.49%).

Domestic Regulation and the Trade in Service 59


HEIs located in Metro Manila account for 61.43% of all foreign students in
1998-99. Other regions with significant foreign students are regions VI, I and III.
The University of Sto. Tomas tops all HEIs in the number of accepted foreign students.
Other popular schools among foreigners are St. Louis University, De La Salle University-
College of St. Benilde and Lyceum of Northwestern Philippines.

It can be implied from the above requirements that the primary basis for
the regulation of the entry of foreign students is the protection of national security
from foreigners who may enter the country through the numerous educational
institutions in the country. Given that the country has more than 1,300 HEIs and
more than 80 percent of these HEIs are private institutions dependent on tuition
fees for their operations, there is a possibility that these institutions would welcome
additional students coming from other countries. Since many of our HEIs are not
accredited by agencies under the FAAP umbrella, the leniency of their admissions
policy for both local and foreign students is not a far-fetch observation. If this is the
case, educational institutions can become efficient routes for entering the Philippines
to pursue non-educational activities. Because of the potential threat of foreign
students on national security, an interagency committee on the entry of foreign
students has been formed composed mainly of agencies of government involved in
police and national security matters.

In the past, many foreigners have used educational institutions, specially


the non-accredited ones, as base for their entry into the country. Thus, the
requirement of accreditation coming from FAAP is very crucial in granting
accreditation to schools to accept foreign students. What is the basis then for another
accreditation to be conducted by the BID? In the first place, the purpose of
accreditation is merely to determine whether schools have met the minimum
standards set by various accrediting agencies. This certification of accreditation
coming from FAAP agencies is more than enough for BID to grant the certification
of schools to accept foreign students. Is there a need for a second accreditation to
be conducted by BID? Does BID have the capability to evaluate the academic
qualifications of HEIs to accept foreign students? What is the basis of collecting a
P10,000 accreditation fee? If the purpose is to encourage foreign students to enter,
and make the country an attractive center of education, why do we have to collect
fees from students specially those taking short courses in the country?

There are a number of foreign students who enter the country as tourists
and take short courses or seminars in learning English as a second language. Given
the competitiveness of the tuition fees charged by colleges and universities in the
country, foreigners find it convenient to study English here and enter the country
via a tourist visa. However, because of the new rules, these tourists may now be
considered as foreign students and may be asked to follow the procedures required

60 Education and Globalization


by the BID. Such procedures and collection of fees can make the erstwhile competitive
academic programs in the country very expensive.

Foreign Linkages

The Philippines has always placed great value on international cooperation


programs in education, science and business. As a result, exchange agreements
between HEIs in the Philippines and universities abroad expanded. Faculty and
students exchange programs, joint research, offshore education and
teleconferencing paved the way for intercultural understanding and intellectual
growth. On January 11, 2000 CHED issued Memorandum Order (CMO) No.1 Series
of 2000 containing the policies and guidelines in the implementation of international
linkages and twinning programs. The said order aims to achieve the following
objectives:
• To upgrade the present quality of academic programs through
collaborative activities, effective exchange of faculty and cooperation
in research;
• To strengthen educational, cultural, social, economic and political
bonds between the Philippines and foreign institutions;
• To develop a pedagogical reform through international linkages in
higher education and research;
• To promote and facilitate international mobility of teaching staff and
students as an essential part of quality and relevance of higher
education; and
• To enhance existing higher educational goals in the country;

The implementation of the international linkages and twinning programs


shall be the CHED’s responsibility in coordination with and assistance from other
concerned government agencies, such as the DFA and the BID. HEIs recognized by
the CHED, and which have attained at least a level II accreditation and foreign
institution of higher learning recognized by their respective governments and
accredited by their accrediting bodies as quality institutions can be considered
partner institutions of this program.

As provided for in this memorandum the twinning program can be done


through faculty student exchange; collaborative research, scholarship grants, short
and long term training, curriculum development and enhancement, library and
laboratory enrichment and cultural exchange. The HEIs in the Philippines shall
identify potential partners and should determine the potential fit between themselves
and the candidate foreign partner institution. Both partners shall draft the MOA in
terms of programs, duration, evaluation and termination of the agreement.

Domestic Regulation and the Trade in Service 61


The parties shall review the proposed agreement and submit the same to the
CHED which shall determine whether it complies with all the National Laws as well as
the its policies. The CHED shall evaluate the following documents containing the
objectives and the nature of the twinning program, background of the foreign
institution including its recognition from the Ministry of Education and its equivalent,
proposed MOA of the contracting party, approval of the proposed MOA by Foreign
Ministry and Ministry of Education or its equivalent, certification of accreditation of
the contracting parties. As part of the requirement set by CHED, Philippine HEI
intending to offer a degree, diploma or certificate to foreign students under the
twinning programs shall have at least level II accreditation. Foreign universities and
colleges intending to offer a diploma or certificate leading to undergraduate, graduate
or postgraduate degrees to Filipino students as represented by their authorized
representative in the country should present the highest level of recognition from
their respective governments duly authenticated by their respective embassies and
consulates in the country.

The CHED encourages the participation of recognized HEIs in international


networks and consortia and considers it crucial to the understanding of global issues,
the development of highly skilled human resource and the overall institutional
growth.

HEIs obtaining membership in international networks and consortia shall


at least be recognized by CHED. They shall have the financial mechanism to support
the membership in the network.

Philippine HEIs shall seek the approval of the CHED in joining academic
consortia and networks with programs leading to awarding of undergraduate,
graduate and post graduate degrees. In this case the institution shall be required to
submit to CHED the following documents containing the objectives and nature of
the consortium/network, Memorandum of Understanding/Agreement stating the
degree to be conferred, certification of recognition of programs, Level II or Level III
accreditation of the programs to be awarded.

Recognized HEIs in the country desiring to become part of an international


consortium and network that does not lead to awarding of an undergraduate, graduate
and postgraduate degrees, may take part freely in this collaborative activities.

In terms of evaluating and validating the program, the CHED shall implement
a system that will ensure adherence to international standards of excellence on
international programs.

62 Education and Globalization


It would be the responsibility of the partner institution to assign officials
authorized to assess and evaluate the implementation of the linkages and the twinning
program including the mode of financing and institutional support during the
program’s duration. On the other hand, Philippine HEIs will be required to submit
a report on the status of the international linkage and twinning programs to CHED.

Given that majority of educational institutions in the country are privately


owned, there is a strong motivation for Philippine schools to increase their
enrollment by establishing partnerships with foreign colleges or universities. The
attraction of such partnership is based on a promise that Filipino students will earn
foreign degrees while taking courses in the country. However, there are foreign
colleges with questionable reputation that may manage to use unaccredited
Philippine private schools to gain entry and exploit the country’s educational market.

It is in this light that the memorandum issued by CHED and the measures
adopted therein are meant to protect the public from scrupulous individuals trying
to extract commercial gains rather than delivering quality education. The thrust of
CHED is part of its standard-setting function and is not meant to discourage the
formation of cooperative partnership between local educational institutions and
foreign colleges and universities. Thus, it is required that a Philippine HEI
participating in such linkages have at least a Level II accreditation. Foreign colleges
and universities are likewise required to have their program offerings accredited to
ensure that academic seriousness takes precedence over commercial considerations.

Entry of Foreign Professors

Any alien seeking admission to the Philippines for employment purposes


and any domestic or foreign employer who desires to engage an alien for employment
in the Philippines shall obtain an employment permit from the Department of Labor
and Employment (DOLE).

The employment permit may be issued to a non-resident alien or to the


applicant employer after a determination of the non-availability of a person in the
Philippines who is competent, able and willing at the time of application to perform
the services for which the alien is desired.

In order to secure an Alien Employment permit the applicant is required to


write a letter of request addressed to the Regional Director of DOLE. The applicant
should enclose his/her curriculum vitae, contract of employment, and a photocopy
of the passport and visa. For those going to work in higher education, endorsement
from CHED must be secured.

Domestic Regulation and the Trade in Service 63


In securing an endorsement from CHED, the school informs the CHED of its
need to hire foreign professors. After screening the qualifications of a foreign professor,
the school attaches a copy of the visa, passport, birth certificate, academic and
professorial credentials of the foreign professor. Endorsement is issued if the CHED
finds the papers in order. In case of doubt, the CHED counterchecks with the embassy
of the applicant to ensure that the applicant is a registered national.

After the issuance of an employment permit, the alien shall not transfer to
another job or change his employer without prior approval of the DOLE Secretary.
Any non-resident alien who takes up employment in violation of the law shall be
punished accordingly under Articles 289 and 290 of the Labor Code. In addition, any
employer employing non-resident foreign nationals shall submit a list of such nationals
to the Secretary of Labor within 30 days after such date indicating their names,
citizenship, foreign and local addresses, nature of employment and status of stay in
the country.

Accreditation of Academic Units

An important item in facilitating the flow of foreign students in the country


is the accreditation of academic units earned in foreign schools. The CHED has
adopted several guidelines in accreditating foreign units.

The basic document upon which the said accreditation shall be based is the
student’s transcript of records or its equivalent duly authenticated by the concerned
Philippine Mission Abroad (PMA) or by the student’s consulate/embassy in the
Philippines. In case of vagueness in certain courses, their descriptions may be
requested. Validating examinations may also be required of the students upon the
discretion of the academic dean. Similarity of course descriptions shall be the main
consideration in accreditation. Substitution of courses may be granted, provided the
course contents are at least substantially similar. In case of doubt, the evaluator may
refer to the syllabus of the foreign school where the student studied. The number of
units to be granted accreditation shall not exceed the number of units earned, nor
exceed the residency requirement of CHED or the school. Unused earned units may
be credited for any free elective subject.

For subjects requiring prerequisite, the grant of advanced credit may be


allowed on the prerequisite, upon application of the student on the basis of validating
examinations. The required six units of Filipino may be offset by a corresponding
number of unused units earned either in the student’s country of origin or in the
school where presently enrolled. Only units earned by foreign students in the collegiate
level shall be given credits. Units earned in terminal/vocational courses and in high
school shall not be credited. The CHED will provide the school with comparative

64 Education and Globalization


equivalent on foreign educational system as quite for proper evaluation and placement
of foreign students.

For foreign students who desire to take up medicine, dentistry, law and other
courses where the government, through the CHED, has imposed restrictions in
enrollment due to shortage of facilities, they must first have their credentials evaluated
by the HEI where they intend to enroll. If the said credentials are in order and the
HEI concerned deems the student qualified, the said foreign student shall then
present his/her notice of Acceptance (NOA) and other pertinent documents to
CHED through the Office of Student Services. If found in order, the CHED shall
then issue a certificate of Eligibility for Admission (CEA) in accordance with the
provision of Executive Order NO. 188 and other laws, rules and regulations on the
matter.

However, HEIs are now authorized to determine the eligibility of students for
admission to law, medicine and dentistry courses per CHED Memorandum Order
NO. 46s. 1996 provided the following are met and observed:

Law: The applicant-student must be a graduate of a Bachelor’s degree and


must have earned 18 units of English, 6 units of Mathematics and 18 units of social
sciences subjects.

Medicine: The applicant-student must be a graduate of a bachelor’s degree


and must have earned at least 15 units of biology, 10 units of chemistry, 9 units of
mathematics, 5 units of physics and 12 units of social sciences subjects. The applicant
must have taken and passed the National Medical Admission Test (NMAT).

Dentistry: The applicant-student must be a graduate of a predentistry course


which should include 15 units of English, 3 units of mathematics, 10 units of chemistry,
5 units of botany, 12 units of social sciences subjects, 9 units of Filipino and 3 units of
personal and community hygiene.

Establishments of Schools and Branches

Based on the definition given in the Manual of Private Schools and


Regulation, a foreign school is an institution duly established and authorized by
Philippine Law to operate educational programs which principally adhere to either
universally accepted and recognized educational policies and standards of a unique
and differentially prescribed system of education of a particular country other than
the Philippines.

Domestic Regulation and the Trade in Service 65


The Manual allows the establishment of foreign school but it also states that
no school may cater exclusively to aliens or that aliens comprise more than 1/3 of the
school’s enrollment. This prohibition is based on the constitutional provision which
Filipinizes not only the ownership, proprietary control and academic administration
but also student population. However, the Constitution provides for two exceptions:

(1) Those schools established for foreign diplomatic personnel and their
dependents; and
(2) Those schools provided for other temporary residents, unless otherwise
provided by Law

The first exception may not be repealed by legislation whereas the second
may be repealed. Schools exclusively maintained by foreigners for their own nationals
which discriminate against Filipinos are not allowed in this country because such
schools “feed divisiveness, bigotry, prejudice and exclusiveness.”

CHED Memorandum No.01 series of 2000 states that on a case to case basis,
and consistent with national and economic development policies, it may authorize
the establishment and operation of an educational institution with foreign equity in
special economic zones to ensure that all services shall be available to foreign investors
and their dependents in the said special economic zone. Appropriate procedures
and clearances to be obtained from the CHED and SEC shall be followed by the
foreign university establishing its branch in the Philippines in consortium with a
local university. It is expected that the two contracting parties shall accord mutual
help for each other in everything that may be needed in this endeavor and shall
develop a special agreement in accordance with the laws and regulations of each
country.

Qualification Requirements for Foreign Students

To be eligible for admission to a college course, applicants must be graduates


of a DECS-approved secondary course. Applicants who do not possess this qualification
are not eligible for admission to any college course.

Private schools should publish their standards, requirements, and regulations


for admission in the school prospectus or other written materials for the information
of applicants. Graduates of foreign high schools who did not entirely satisfy the specific
requirements of certain college courses could be admitted into college, but with an
entrance deficiency which has to be corrected during their freshman year. This could
be done only by taking and passing all of the regular courses offered in that year. It
they failed to remove the deficiency before the opening of the second year, their
sophomore load would be reduced accordingly. Foreign students who have not

66 Education and Globalization


graduated from high school but have completed at least 11 curriculum years in
elementary and secondary education in other countries may, at the discretion of the
admitting school, be accepted into college courses. The Philippine basic education
generally consists of only 10 years of schooling—6 years of elementary and 4 years of
high school. Hence, a foreign student who has finished his11th year of basic education
in another country is qualified to enter a Philippine college.

Tuition Fees for Foreign Students

The current deregulation policy on tuition and other standard school fee
charges in HEIs is based on the provisions of Batas Pambansa 232, specifically Sec.42
Chapter 5 thereof, which states that “Each private school shall determine its rate of
tuition and other school fee or charges. The rate and charges adapted pursuant to
this provision shall be collectible and their application or use authorized, subject to
rules and regulations promulgated by MECS (now CHED).“

The CHED upon its creation by virtue of RA 7722 in 1994, continued to


implement the deregulation of tuition and other standard school fee charges coming
up with CMO Nos. 03 and 16 s. 1997 later superseded by CMO 13 s. 1998, outlining
the guidelines and procedures to be followed by HEIs intending to increase tuition
fees (see attached CMO No.13 series of 1998).

As of June 15, 2000, a total of 420 private HEIs applied for tuition fee
increases, representing about 36% of the 1,167 all over the country. Increases averaged
from a low of 10% (Region 11), to a high of 17% (Region VIII and XI) for a national
average of 13%. The National Capital Region (NCR) recorded the most number with
77 HEIs, out of its 224, accounting for about 18.33 of the national total with an average
increase of 11%.

As far as foreign students are concerned, there are no existing rules and
regulations regarding how much tuition fee a school should charge foreign students.
It has been a practice that foreign students are charged the same fees with that of local
students. However, additional charges termed as developmental fund or foreign
students fund are charged to foreign students. The respective institutions are given
leeway on which fees to charge.

THE PROFESSIONAL REGULATION COMMISSION (PRC)

Legal Basis

The Professional Regulation Commission (PRC) is a government agency


under the Office of the President charged with the regulation and supervision of

Domestic Regulation and the Trade in Service 67


various professions under its jurisdiction. It was created by Presidential Decree No.
223 in June 22, 1973 and empowered to implement various laws and policies of the
government including the technical and ethical standards governing the practice of
professions. In December 5, 2000, the Professional Regulation Commission
Modernization Act of 2000 (RA8981) was signed into law and repealed the various
laws defining the legal basis of the PRC.

In previous years, the practice of various professions was under the supervision
of the Office of the Boards of Examiners. However it was misconstrued as nothing but
an examination unit. Considering that all professional laws creating the various boards
have empowered the boards with the supervision and regulation of professional practice
in the Philippines, such power, however, was not clearly known to all. Seeing the need
to enforce the laws regulating the various professions, the PRC was created to
administer, implement, coordinate and supervise the various boards of examiners.

Laws Governing the Practice of Various Profession

As mentioned earlier, the practice of profession is governed by various


legislation implemented by boards composed of practicing professionals in the field
and subject to the supervision of the PRC. The following is an enumeration of the
various boards governing the practice of professions and their respective laws that
define the scope of the regulated profession.

The Board of Aeronautical Engineering under supervision of the PRC is in


charge with the licensing and regulation of the aeronautical engineering profession.
The practice of the profession is regulated by law as defined by Republic Act 1570
otherwise known as the “Philippine Aeronautical Engineering Decree”.

The Board of Agricultural Engineering under the supervision of the PRC is


in charge with the licensing and regulation of the agricultural engineering profession.
The practice of the profession is regulated by law as defined by Republic Act 3927
otherwise known as the “Philippine Agricultural Engineering Law”.

The Board for Naval Architecture and Marine Engineering under the PRC is
in charge with the licensing and regulation of the naval architecture and marine
engineering profession. The practice of the profession is regulated by law as defined
in Republic Act 4565, otherwise known as “An Act To Regulate The Practice Of
Naval Architecture And Marine Engineering In The Philippines”.

The Board of Chemical Engineering under the PRC is in charge with the
licensing and regulation of the chemical engineering profession. The practice of the

68 Education and Globalization


profession is regulated by law as defined in Republic Act 318, otherwise known as the
“Chemical Engineering Law”.

The Board of Civil Engineering under the PRC is in charge with the licensing
and regulation of the civil engineering profession. The practice of the profession is
regulated by law as defined in Republic Act 1582, otherwise known as “Civil
Engineering Law “.

The Board of Electronics and Communications Engineering under the PRC


is in charge with the licensing and regulation of the electronics and communications
engineering profession. The practice of the profession is regulated by law as defined
in Republic Act 5734, otherwise known as “The Electronics and Communications
Engineering Act of the Philippines”.

The Board of Geodetic Engineering under the PRC is in charge with the
licensing and regulation of the geodetic engineering profession. The practice of
the profession is regulated by law as defined in Republic Act 4374, otherwise known
as the “Geodetic Engineering Law”.

The Board of Mechanical Engineering under the PRC is in charge with the
licensing and regulation of the mechanical engineering profession. The practice of
the profession is regulated by law as defined in Republic Act 8495, otherwise known
as the “Philippine Mechanical Engineering Act of 1998”.

The Board of Mining Engineering under PRC is in charge with the licensing
and regulation of the mining engineering profession. The practice of the profession
is regulated by law as defined in Republic Act 4274, otherwise known as the “Mining
Engineering Law of the Philippines”.

The Board of Accountancy under the PRC is in charge with the licensing and
regulation of the accountancy profession. The practice of the profession is law as
defined in Republic Act 692, otherwise known as “The Revised Accountancy Law”.

The Board of Architecture under the PRC is in charge with the licensing and
regulation of the architecture profession. The practice of the profession is regulated
by law as defined in Republic Act 545, otherwise known as “An Act to Regulate the
Practice of Architecture in the Philippines”.

The Board of Criminology under the PRC is in charge with the licensing and
regulation of the criminology profession. The practice of the profession is regulated
by law as defined in Republic Act 6506, otherwise known as “An Act Creating the
Board of Examiners for Criminologists in the Philippines and for Other Purposes“.

Domestic Regulation and the Trade in Service 69


The Board of Dentistry under the PRC is in charge with the licensing and
regulation of the dentistry profession. The practice of the profession is regulated by
law as defined in Republic Act 4419, otherwise known as “An Act to Regulate the
Practice of Dentistry in the Philippines and for Other Purposes.”

The Board of Forester under the PRC is in charge with the licensing and
regulation of the practice of forestry. It is regulated by law as defined in Republic Act
6239, otherwise known as “An Act to Regulate the Practice of Forestry in the
Philippines”.

The Board of Geology under the PRC is in charge with the licensing and
regulation of the geology profession. The practice of the profession is regulated by
law as defined in Republic Act 6239, otherwise known as “An Act to Regulate the
Practice of Geology in the Philippines and to Provide for Licensing and Registration
of Geologist”.

The Board for Librarians under the PRC is in charge with the licensing and
regulation of the practice of librarianship. The practice of the profession is regulated
by law as defined in Republic Act 6966, otherwise known as “An Act to Regulate the
Practice of Librarianship and Prescribing the Qualifications of Librarians.”

The Board of Master Plumbers under the PRC is in charge with the licensing
and regulation of the plumbing profession. The practice of the profession is
regulated by law as defined in Republic Act 1378, otherwise known as “An Act to
Regulate the Trade of Master Plumbers”.

The Board of Medical Technology under the PRC is in charge with the
licensing and regulation of the medical technology profession. The practice of the
profession is regulated by law as defined in Republic Act 5527, otherwise known as
“An Act Requiring the Registration of Medical Technologist, Defining their Practice
and for Other Purposes”.

The Board of Medicine under the PRC is in charge with the licensing and
regulation of the medical profession. The practice of the profession is regulated by
law as defined in Republic Act 2382, otherwise known as “The Medical Act of 1959.”

The Board of Midwifery under the PRC is in charge with the licensing and
regulation of the midwifery profession. The practice of the profession is regulated
by law as defined in Republic Act 7392, otherwise known as “An Act Revising Republic
Act 2644, as Amended”, otherwise known as the “Philippine Midwifery Act”.

70 Education and Globalization


The Board of Nursing under the PRC is in charge with the licensing and
regulation of the nursing profession. The practice of the profession is regulated by
law as defined in Republic Act 7392, otherwise known as “An Act Regulating the
Practice of Nursing in the Philippines”.

The Board of Optometry under the PRC is in charge with the licensing and
regulation of the optometry profession. The practice of the profession is regulated by
law as defined in “Revised Optometry Law of 1995”.

The Board of Pharmacy under the PRC is in charge with the licensing and
regulation of the practice of pharmacy. The practice of the profession is regulated
by law as defined in Republic Act 5921, otherwise known as “An Act Regulating the
Practice of Pharmacy and Setting Standards of Pharmaceutical Education in the
Philippines and for Other Purposes”.

The Board for Professional Teachers under the PRC is in charge with the
licensing and regulation of the teaching profession. The practice of teaching in
elementary and secondary schools regulated by law as defined in Republic Act 7836,
otherwise known as “An Act to Strengthen the Regulation and Supervision of the
Practice of Teaching in the Philippines and Prescribing a Licensure Examination for
Teachers and Other Purposes.”

The Board of Veterinary Medicine under the PRC is in charge with the
licensing and regulation of the practice of veterinary medicine. The practice of the
profession is regulated by law as defined in Republic Act 382, otherwise known as
“An Act to Regulate the Practice of Veterinary Medicine“.

The legal profession on the other hand is not under the supervision of the
Professional Regulation Commission. The licensing and regulation of the legal
profession is under the Supreme Court of the Philippines.

Powers and Functions of the Professional Regulation Commission (PRC)

Pursuant to its mandate, the PRC carries out regulatory, licensing, and
supervisory functions. As such, it formulates, prescribes and promulgates policies,
rules and regulations, and standards relative to the admission and practice of
professionals. It also administers the licensure examinations for professional practice
in cooperation with the various Professional Regulatory Boards (PRBs). After the
licensure examination, the PRC issues certificates of registration to the new
professionals. Then renewal of professional licenses is another function performed

Domestic Regulation and the Trade in Service 71


by PRC in conjunction with PRBs. To ensure compliance and professional standards,
it conducts periodic inspection of establishments with the cooperation of the PRBs.
To assure the global competitiveness and excellence of Filipino professionals, the
Commission, in previous years, has enforced compliance with the continuing
professional education (CPE) requirements. As a quasi-judicial body, it investigates
and adjudicates complaints and cases against professionals.

With the passage of the PRC Modernization Act of 2000, additional powers
and functions were granted to the Commission. It can require an examinee, who has
failed three times to pass the licensure examination, to take refresher courses. It is
also required to provide schools offering courses for licensure examinations with
copies of sample test questions on examinations recently conducted by the
Commission within six months from the release of the examination results. It has
to monitor the performance of schools in licensure examinations by publishing the
results of their performance. In addition, the PRC has to adopt and institute a
comprehensive rating system for schools on the overall performance of their
graduates in licensure examinations. The PRC Modernization Act of 2000 has also
repealed the mandatory requirement of continuing professional education (CPE)
for the renewal of professional licenses.

Under the direct supervision of the Commission are 38 Professional


Regulatory Boards and two Specialty Boards that exercise administrative, quasi-
legislative, and quasi-judicial powers over their respective professions. The 40 PRBs
which are created by separate enabling laws, perform the following functions subject
to review and approval by the Commission.

• Regulate the practice of professions;


• Monitor the conditions affecting the practice of the profession;
• Recommend the registration of a foreign professional without
examination subject to certain conditions;
• Recommend the issuance of certificate of registration/license or
special temporary permit to foreign professionals subject to certain
conditions ;
• Prepare the contents of licensure examinations;
• Score and rate the examination papers of licensure examinations;
• Subject to the approval of the Commission, determine the
appropriate passing average rating in licensure examinations;
• Determine, prescribe, and revise the course requirements;
• Visit/inspect schools and establishments for feedback;
• Adopt and enforce a Code of Ethics for the practice of their
respective professions;
• Administer oaths and issue Certificate of Registration;

72 Education and Globalization


• Investigate violations of set professional standards and adjudicate
administrative and other cases against erring registrants; and
• Suspend, revoke, or reissue Certificate of Registration for causes
provided by law.

Rules on the Entry of Foreign Professionals

Services provided by accountants, engineers and architects are but some of


the fastest-growing sectors in different economies, but the international flow of these
professional services remain restricted by a complex set of rules on domestic regulation.
In the Philippines, the entry and stay of foreign professionals are subject to rigid
control and restrictions. These restrictions can be gleaned from the various laws that
are being enforced to see to it that entry of foreign professionals is well regulated.

For example, Article XII, Section 14 of the Philippine Constitution provides


that the “practice of profession in the Philippines shall be limited to Filipino citizens,
save in cases prescribed by law.” A profession as defined is a “calling which requires
the passing of an appropriate government board or bar examination such as the
practice of law, medicine, public accountancy, engineering, and others.” This
privilege to practice a profession as enshrined in our Constitution is limited only to
Filipino citizens. This, however, is not an absolute rule since laws regulating various
professions allow certain exceptions. Thus, pursuant to a treaty, or on grounds of
reciprocity, or with respect only to certain professions such as medicine, or in favor
of a particular foreigner for special reasons, foreigners may be allowed to practice
in the Philippines.

This Constitutional mandate is, in turn, used as basis in various legislation


regulating the practice of professions as well as in Article 40 of the Labor Code of
the Philippines. The pertinent provision of the Labor Code states that “any alien
seeking admission to the Philippines for employment purposes and any domestic
or foreign employer who desires to engage an alien for employment in the
Philippines shall obtain an employment permit from the Department of Labor and
Employment. The employment permit may be issued to a non resident alien or to
the applicant employer after a determination of the nonavailability of a person in the
Philippines who is competent, able and willing at the time of application to perform
the services for which the alien is desired.”

Although entry of foreign professionals is allowed, it is subject to a rigid labor


demand test. This test maintains a very strong preference towards the hiring of Filipino
professionals. As long as there is an available Filipino professional who can render
the services required, entry of a foreign professional will not be allowed. After passing
the labor market test, a foreign professional has to fulfill the provision of RA 5181 that

Domestic Regulation and the Trade in Service 73


requires three years of residence in the Philippines before he can practice his
profession.

This Constitutional restriction on the entry of foreign professionals can be


evaluated either on the basis of public interest or the country’s economic philosophy.
On the basis of public interest, only persons who have undergone the necessary
academic preparation and have passed the appropriate government examination
and who possess such other special qualifications prescribed by the government are
allowed to practice a profession. Thus, restriction on the unqualified individuals is
understandable in order to protect the general public from the ill effects of any
malpractice. However, on what grounds of public interest can we exclude foreign
professionals to practice domestically if they are allowed to practice in their home
territory? If someone is certified not to inflict harm or threaten public interest in his
home country why is he suspect to inflict harm in a foreign country? This is only
possible if in case the country of citizenship of the foreign professional is at war with
the host country. Otherwise, there is no basis for using public interest as a ground for
restricting the entry of a foreign professional.

The basis for restriction then will have to be analyzed from the economic
philosophy the host country wishes to pursue. There is a strong indication that this
is the case since there is a Constitutional provision specifying effective control of
the economy by Filipinos. This condition does not only cover economic enterprises
but more so the practice of various professions. Although the intention of this
Constitutional mandate is to inculcate the value of patronizing the services of local
professionals to assist in their own development and at the same time save on foreign
currency, it has the effect of promoting protectionism.

This economic philosophy of protecting local professionals may have in fact


hindered the development of professions in the country and has affected the quality
of service. Unless we have a superior technology over other nations, one can question
the use of nationality differences to determine the quality of service delivery.

Regulations on Recognition

If nationality is not the crucial issue in restricting the entry of foreign


professionals, then public interest demands that some forms of recognition be
bestowed to qualified and certified foreign professionals. As it is, there is no absolute
prohibition or restriction on foreigners who intend to practice their professions in
the Philippines. Although our domestic regulations are indeed restrictive, they allow
for certain exceptions. A mechanism is provided for that allows foreigners to practice
their professions. This route is found in one of the powers of PRC under Section 7
(j) of RA 8981 or The PRC Modernization Act of 2000:

74 Education and Globalization


Upon recommendation of the Professional Regulatory
Board concerned, to approve the registration of and authorize the
issuance of a certificate of registration/license and professional
identification card with or without examination to a foreigner
who is registered under the laws of his state or country and whose
certificate of registration issued therein has not been suspended or
revoked: Provided, That the requirements for the registration or
licensing in said foreign state or country are substantially the
same as those required and contemplated by the laws of the
Philippines and that the laws of such foreign country or state
allow the citizens of the Philippines to practice the profession on
the same basis and grant the same privileges as those enjoyed by
the subjects or citizens of such foreign state or country: Provided,
further, That the Commission may, upon the recommendation of
the Board concerned, authorize the issuance of a certificate of
registration/license or a special temporary permit to foreign
professionals who desire to practice their professions in the country
under reciprocity and other international agreements; consultants
in foreign-funded, joint venture or foreign-assisted projects of the
government, employees of Philippine or foreign private firms or
institutions pursuant to law, or health professionals engaged in
humanitarian mission for a limited period of time: Provided,
finally, That agencies, organizations or individuals, whether
public or private, who secure the services of a foreign professional
authorized by law to practice in the Philippines for reasons
aforementioned, shall be responsible for securing a special permit
from the Professional Regulation Commission (PRC) and the
Department of Labor and Employment (DOLE) pursuant to
PRC and DOLE rules.

Based on the new law, foreign professionals are not granted unconditional
access in our country. The conditions for granting recognition for a foreigner to
practice his profession in the Philippines are as follows: similarity in the educational
and licensing requirements in other countries, reciprocity and international
agreements. Under PD 223, however, international prominence was another
condition allowed for foreign professionals to practice in the country. This deleted
condition in RA 8981 in fact overrules the other conditions as the test for recognition.
In particular the pertinent deleted provision states that “the Commission may, upon
recommendation of the Board concerned, and approval of the President, authorize
the issuance of a certificate of registration to any foreigner, without examination or a
temporary special permit to practice the profession regardless of whether or not
reciprocity exists in the practice of his profession between his country and the

Domestic Regulation and the Trade in Service 75


Philippines and under such conditions as may be determined by the Commission, if
such foreigner is internationally known to be an outstanding expert in his chosen
profession or a well known specialist in any of its branches, and that his services are
urgently necessary for lack or inadequacy of local experts or if his services will promote
the advancement of the profession in the Philippines.” (Section 5 (j) PD 223)

This deleted provision was previously seen as an avenue that will facilitate
country’s move towards mutual recognition agreements with other countries in the
region without violating our laws. However, there is something subjective in these
decisions to grant recognition. They have to be decided by the appropriate
Professional Regulatory Board. A lenient board, for example, may allow the free entry
and recognition of foreign professionals to practice domestically. However, a board
composed of professionals who are protective of their interests, may deny recognition,
even if the condition of international prominence, reciprocity and similarity in
educational and licensing requirements are fulfilled. Although this provision is a
ground for opening up, it is subject to personal interpretation and is meant as an
exception rather than the rule. If the recognition of all foreign professionals has to go
through the process and final approval by the President to practice and recognize,
the intention of the law is really to limit the entry of foreign professionals.

However, the deletion of this important condition under RA 8981 may


further restrict the entry of foreign professionals into the country. The universities
and research institutions may be adversely affected by the removal this condition
for entry. If in the past, it was difficult to enter, now the entry of distinguished
professionals in not even allowed.

In addition, one of the key changes in the PRC Modernization Act of 2000
(RA8981) is the removal of the mandatory requirement of continuing professional
education (CPE) for the renewal of a professional license. Although CPE is
considered as an integral component of programs on quality assurance that would
facilitate the movement of professionals internationally, this dimension has been
overlooked during the discussions in the formulation of RA 8981. The contentious
issues during the deliberations of the new law were focused on the abuses in the
provision of CPE and the selection of CPE providers. CPE as practiced in this country
has become too commercialized and has deviated from its real objective of
professional updating towards maintaining the quality of professionals for global
competition. Moreover, the problem of selecting and accrediting CPE providers
turns into a turf war among competing professional organizations. Instead of
competing in terms of the quality of providing CPE services, some have gone to the
extent of questioning their competitors’ existence in courts. Because of this pressing
domestic problem, our legislators as well as professional organizations failed to

76 Education and Globalization


recognize that CPE is an integral part of the disciplines in the regulation of professions
consistent with the provisions of the GATS.

Because of the removal of this requirement, the only determinant of


professional competence to practice in this country is based on a single examination.
However, international standards on the practice of professions go beyond the initial
licensure examination. Other succeeding activities and measures of professional
growth and advancement should also be included. Here, meaningful experience
and continuing professional education become very critical components of the quality
and competence of the professionals. Thus, the removal of this mandatory requirement
was indeed a disservice to our professionals and may threaten our initial commitments
with GATS.

In the light of the removal of CPE as a mandatory requirement, several options


may be implemented. A system of accreditation and promotion in the professional
ranks may be instituted by professional organizations. Elevation to ranks may require
more competencies as evidenced by acceptable outputs. In addition, linking the
development of research and graduate education to HEIs, on one hand, and the
improvement of CPE programs, on the other hand, can also be explored. Another
avenue is to adopt the best practices of the private sector in conducting CPE programs
for their employees. Moreover, the program of giving awards for best technical papers,
research and outstanding young scientists can be integrated with the current practice
of PRC and various professional organizations in giving outstanding professional
awards (Tullao 1999).

Regulations on Registration

In our economy registration or licensing of professionals usually requires


compliance with certain standards. To be registered as a professional in our country,
membership in a professional body is not required. However, prospective applicants
must pass the examination given by the appropriate Professional Regulatory Board
and meet the requirements of prescribed laws governing professional practice and
other laws pertaining to their profession. No certificate of registration shall be issued
to any candidate convicted of any offense involving moral turpitude, or found guilty of
immoral or dishonorable conduct, and candidate of unsound mind by a court of
competent jurisdiction. However for reason of equity and justice, the Commission
may issue a certificate of registration upon recommendation of the Board. But this
can only be done after the lapse of two years. The certificate of registration shall show
the full name of the registrant and a serial number and shall be signed by all the
Members of the Board and the Chairman of the Commission.

Taking a professional oath in the form prescribed by the Commission before


any person authorized to administer the same is also required. In addition to this, a

Domestic Regulation and the Trade in Service 77


successful examinee is required to pay the registration fee as provided for by Law.
This annual registration fee shall be charged to every practicing professional. Failure
to pay this fee for five continuous years shall be sufficient cause for the suspension of
his registration certificate. The license shall be valid for three years. Under the RA
8981, the previous compliance with the CPE program for the renewal of certificate of
registration has been removed as a requirement.

Limitations and Restrictions on Practice

A survey of the laws governing various professions would indicate the presence
of specific provisions limiting and imposing restrictions on the practice of professions.
The most common limitation specified in the laws governing the practice of a
profession is the absence of a valid certificate of registration that would be the evidence
of the person’s capacity to render professional services. Without such valid certificate
of registration no one is legally allowed to practice. For example, Section 25 of PD
692 provides that “xxx all partners of a partnership organized for the practice of
public accountancy shall be registered public accountants in the Philippines. The
Commissioner of the Securities and Exchange Commission shall not register any
corporation organized for the practice of public accountancy.”

On the other hand, Section 13 of RA 545 provides that “Unless exempt from
registration, no person shall practice or offer to practice architecture in the Philippines
without having previously obtained a certificate of registration from the Board of
Examiners for Architects. It shall be unlawful for any architect, to seek to avoid the
provisions of this act by the use of any other than the title “architect” and no person
shall practice architecture in this country, or present themselves as qualified for such
practice, unless and until they have qualified and been registered as provided in this
act.”

A similar provision can be found in Section 11 of RA 318 wherein it provide


that “unless exempt from registration, no person shall practice or offer to practice
chemical engineering in the Philippines as defined in the Act without having
previously obtained a certificate of registration from the Board of Examiners for
Chemical Engineers created under this act.”

Section 28 of PD 1570 considers it unlawful for any person to practice or


offer to practice aeronautical engineering, or use the title aeronautical engineer, or
use any word, figure or letter or sign, that would convey he is an aeronautical engineer,
if he was not able to obtain a valid certificate of registration. Further, any firm or
company engage in designing, planning, construction, installation, alteration,
manufacture or marketing of any aircraft and its components, accessories, instruments,

78 Education and Globalization


equipment and supply without the certification, supervision or guidance of an
aeronautical engineer.

These provisions are meant to define the meaning and application of a


professional. This is not meant to exclude foreigners but covers the citizens of the
country who are not licensed to practice the profession. Here, public interest is the
basis for the exclusivity of the profession.

Another restrictive provision on the practice of the profession is the


requirement that only licensed and registered professionals can teach subjects for
licensure examinations. Under Section 11 of RA 8981, “all subjects for licensure
examinations shall be taught by persons who are holders of valid certificates of
registration and valid professional licenses of the profession and who comply with
the other requirements of the CHED.”

This provision has been questioned not only on its restrictive effects but its
impact on the development of higher education. For example, a doctoral degree
holder in mathematics cannot teach mathematics for engineering students because
mathematics is a subject covered in licensure examination. In the same light, who is
better prepared to teach auditing or accounting, a non-CPA but with a Ph.D in
accountancy or a graduate of BSA with a professional license in public accounting?

Rules on Advertising

A perusal of the various laws governing the practice of professions reveals


that there are certain laws that in specify in detail the restrictions on advertising.
However, similar provisions cannot be found in the laws governing other professions.
Section 10, of the Code of Ethics for Accountancy provides “that a CPA shall not
advertise, or cause or allow to be advertised, his professional attainment or services
except in stating qualifications in applications for employment. However, publication
of authorship of book, technical reports and studies lectures or papers delivered in
conferences and seminars and similar activities which are beneficial to the profession
as a whole are not considered advertising.”

Section 20 of the Code of Ethics for Dentist, provides more detailed and
specific prohibitions and restrictions on advertising. The dentist or the dental clinic
is not allowed to have more than one window or building sign per exposure. The
letters in the sign should not be more than 8 cm. by 8 cm. in size and it should show
only the name of the dentist, the term dentist or dentistry. Terms such as “X-ray“,
“Gas”, “Air –abrasive”, “dental laboratory,” “Air-conditioned”, or any technical term
must not appear in the card, stationeries, office doors and signboards of the dentist.
He may use professional cards to identify himself but the card must be of traditional
type and size.

Domestic Regulation and the Trade in Service 79


There are also restrictions on advertising imposed on Architects in the practice
of their profession. An architect is not allowed to use paid advertisement nor use self–
laudatory, exaggerated or misleading publicity. However, the presentation of factual
materials, verbal or visual of the aims, standards and progress of the profession through
literature or by industrious application of his work or services which tend to dignify
the professional or advance public knowledge of the architect’s function in society
may be presented through any public communication media. The architect shall not
mislead the public through advertisement, signs or printed matter citing his
professional specialization unless such qualifications are well-known facts or
sanctioned by professional consensus and years of experience.

In the field of engineering, restrictions on advertising focus mostly on


restrictions against self laudation. There is no restriction on advertising for an
agricultural engineer. However, a chemical engineer shall not indulge in self
laudatory advertisement or make exaggerated, untrue, or misleading statements in
media or any public forum. On the other hand, civil engineers and mechanical
engineers are prohibited to advertise in self-laudatory language, or in any other manner
derogatory to the dignity of the profession. For an electrical engineer, he is required
to advertise only his work or merit in simple manner and avoid any practice that will
discredit or do injury to the dignity and honor of his profession. There is a prohibition
against self laudation in advertisement and making false statements with respect to
his/her qualifications and experience. The mining engineer may publish or
disseminate professional calling cards or advertise his/her expertise provided that
the content and information are true and not exaggerated. For geodetic, metallurgical
electronics and communication engineers the law is silent as far as restrictions on
advertising is concerned.

Although the reasons cited for regulating advertisement for professionals


may be reasonable since they prohibit self-laudatory, untrue, derogatory and
misleading information, this should not be interpreted as a general prohibition on
advertising. Even in other countries, the ethics on advertising for professionals has
been revised to exclude false advertising. But since advertising is a form of disclosure
it can enhance information being relayed to potential clients. Thus, advertising
should be treated as a means of addressing asymmetries in information between
the customers and the professional service providers that lead to the formation of
the right decision for the clients. But since everyone is free to organize and present
this information to the public, it can lead to false advertising. What can be done by
the PRC and PRBs is to present to the professionals a template of what information
they should disclose to the public instead of focusing on the various limitations for
advertising. In this way, every one is required to disclose the same information that

80 Education and Globalization


would benefit the consumers without the unnecessary derogatory and false information
that may threaten the dignity of the profession.

REGULATORY FUNCTIONS OF CHED AND PRC AND GATS PRINCIPLES ON


DOMESTIC REGULATION

Framework in Domestic Regulation in the GATS and the Disciplines on the Practice
of Professions

The framework on domestic regulation in the GATS operates mainly on


three principles: “… each member shall ensure that all measures of general application
affecting trade in services are administered in a reasonable, objective, and impartial
manner” (Art VI:1). The extent at which domestic regulation is pursued extends to
cover professional services. At its core, Article VI lays down guidelines on licensing
requirements, procedures and technical standards to be adopted by members and
enforced on foreign service providers which should be based according to Art VI: 4 on
objective and transparent data. Procedures set should not be more burdensome than
necessary to meet regulatory objectives and licensing requirements/procedures
should not in themselves constitute as barriers in the practice of professions. The
establishment of domestic regulations as provided for in the GATS ensures each
member that transborder trade in services will be as less restrictive as possible, while
observing transparent and nondiscriminatory standards.

Regulation on the practice of professions facilitates the removal of market


inefficiencies and seeks to lessen social costs of consumers by minimizing risks posed
by foreign service providers. Risks are minimized through licensing procedures,
requirements and technical standards set by local authorities, all of which should
be consistent with GATS provisions on domestic regulations (Art VI, GATS). These
standards ensure the quality of service and professional competence of foreign
providers.

Comparative Analysis

Congruence and Differences on the Practice of Domestic Regulation on Educational


Services and Professional Services with the Criteria Set by GATS

The Working Party on Professional Services (recently replaced by the Working


Party on Domestic Regulation through the Decision on Domestic Regulation adopted
by the Council for Trade in Services last April 26, 1999) has so far covered only the
accountancy sector in terms of forming sectoral disciplines for each profession. The
following analyses of congruence and differences on the practice of domestic

Domestic Regulation and the Trade in Service 81


regulation on educational services and professional services and the criteria set by
the GATS are based on the general provisions of Article VI of the GATS.

On Article VI:2, “Each member shall maintain or institute as soon as


practicable, judicial, arbitral or administrative tribunals or procedures which provide,
at the request of an affected service supplier, for the prompt review of, and where
justified, appropriate remedies firm administrative decisions affecting trade in
services.” If we apply this provision on educational services, parallel bodies are
established in educational institutions and they are unique for each institution.
Schools that are authorized by CHED to admit foreign students are required to establish
a Foreign Students’ Unit within their organization. This unit is the one coordinating
with various government agencies involved in the processing of the application of a
foreign student. In addition, the CHED is empowered to approve the establishment
and operation of educational institutions with foreign equity.

For professional services, on the other hand, part of the powers and
functions of the various professional regulatory boards together with the PRC are
congruent with the provision of this article (Sec. 9, RA 8981). Moreover,
administrative investigation that may affect the practice of the profession services
are carried out by the relevant professional regulatory board.

Article VI:3 states that “where authorization is required for the supply of a
service on which a specific commitment has been made, the competent authorities
of a member shall, within a reasonable period of time after the submission of an
application is considered complete under domestic laws and regulations, inform
the applicant of the decision concerning the application.” We observe a matching of
the current practice affecting the entry of foreign students with the spirit of this
provision. For example, graduates of foreign schools who did not entirely satisfy the
specific requirements of certain college courses could be admitted into college but
with an entrance deficiency that has to be corrected during the students’ freshmen
year. This could be done while taking and passing all of the regular courses offered in
that year. If they failed to remove the deficiency before the opening of the second
year, their sophomore load will be reduced accordingly. For professional services, this
provision can be compared with the rules and regulations governing the practice of
professionals. For establishment and operation of educational institutions with foreign
equity, appropriate procedures and clearances should be followed and secured by
the foreign university and its local partner from CHED and SEC.

Article VI:4 of the GATS defines the commitments relating to the qualification
requirements and procedures, technical standards and licensing requirements. They
must be “a) based on objective and transparent criteria, such as competence and the
ability to supply the service; b) not more burdensome than necessary to ensure the

82 Education and Globalization


quality of the service and c) in the case of licensing procedures, not in themselves a
restriction on the supply of the service.”

We see the similarity of this provision with the requirements set in admitting
foreign students. For example, foreign students who have not graduated from high
school but have completed at least 11 curriculum years in elementary and secondary
education in other countries may, at the discretion of the admitting school be
accepted into college courses. The CHED will provide the school a comparative
equivalent on foreign education systems as basis for proper education and
placements of foreign students. There are no existing rules and regulations regarding
how much tuition fee a school should charge foreign students.

A major difference is observed in the provision of Article VI:4 and rules


governing the employment of foreigners in educational and professional services.
According to the labor market test, employment of a foreign professional will be
allowed only after the determination of non availability of a person in the Philippines
who is competent, able and willing at time or application to perform the services
for which the alien is desired.

Regulatory Powers of CHED and PRC and their Impact on Trade in Services

Based on the similarities and differences presented in the previous section,


the regulatory powers of CHED and PRC may prevent the entry of foreign
professionals.

The labor market test under the Labor Code is one of the main barriers for
trade in services. This law especially poses trade restrictions in the education sector,
where foreign professionals may only be allowed to teach in the absence of any
other Filipino competent enough to teach the subject where the foreigner specializes
in. In addition, the foreign reciprocity rule requires that the country where the
foreigner came from must apply the same principle or standard for the entry of
Filipino professionals. This restriction can serve, to some extent, a factor contributing
to the deterioration of the quality of education provided here in the Philippines. In
fact, as mentioned earlier, the deletion of “international prominence” as a condition
for entry of foreign professionals under RA 8981 may also adversely affect the
development of higher education in the country.

Allowing foreign professors to teach here in the Philippines should be looked


upon as an opportunity rather than as a disadvantage to local professionals in the
academe. Given the state of higher education in the Philippines and the quality of
instruction and research, their talents can serve as resources, which can be tapped for
the development of graduate education as well as the expansion of research activities
in many educational institutions. Foreign professors, in the first place, cannot be
viewed as displacing the domestic professors since the compensation package and
Domestic Regulation and the Trade in Service 83
the teaching conditions are enough disincentives for the foreigner to come and
teach in the country. But barring professionals from entry even if they are willing to
take the compensation package is a disservice to the development of the educational
system.

Moreover, the restriction posed by the labor market test and the foreign
reciprocity requirement creates a major challenge for the country’s effort in
establishing a more conducive environment for foreign investment. How can the
Philippines attract foreign companies to do business in our country if there are
restrictions in the entry of professionals needed for these businesses? We know that
the quality of professionals, both domestic and foreign, is a major ingredient for
success of any foreign investment in the country. However, this concern has been
addressed, to some extent, by RA 8981 by allowing the granting of special temporary
permits to foreign professions who are employees of foreign private firms or
institutions.

On the other hand, there are those who view the labor market test as a
means for the development of Filipino understudies. According to this perspective,
foreign professionals will only be allowed to work in the country not only due to the
absence of local expertise but also to develop local professionals. Thus, the labor
market test should not be seen as a restrictive condition against foreign professionals
but as a proactive measure towards the development of Filipino professionals.

Measures for the Development of Higher Education and the Improvement of Global
Competitiveness of Filipino Professionals

Measures to Improve the Quality of Filipino Professionals

Enhance the Continuing Professional Education Program

The Continuing Professional Education (CPE) is one of the flagship


programs of the Commission aimed at raising and enhancing the professionals’
level of competence to ensure their competitiveness anywhere in the world. Under
this program, professionals undergo enhancement programs to continually upgrade
and update their knowledge; competence and awareness of developments in their
respective professions brought about by modernization and advances in technology.
There is value in requiring professionals to have continuing education as a process
of domestic regulation since this is in line with the protection of consumers and the
promotion of public interest.

Although the current implementation of this program has been subject to


criticism, the importance of CPE should not be underestimated. Thus, proposals of
some sectors to eliminate the CPE program as a precondition for renewal of license

84 Education and Globalization


is uncalled for. In fact, the deletion of this requirement under the PRC Modernization
Act of 2000 is a wrong move because continuing professional education is one of the
pillars of domestic regulation of professionals enshrined under the GATS. What is
needed is to restructure the program and its accreditation system towards graduate
education, research and inventions away from its current emphasis on attendance to
seminars (Tullao 1998).

To make CPE a more relevant program beyond a requirement for the


renewal of a professional license, there is a need to empower professional
organizations in granting titles and hierarchical ranks to licensed professionals as a
way of recognizing their enhanced knowledge, skills and competencies in the
profession. Under this scheme, the PRC together with the appropriate professional
regulatory board will continue to be in charge of the process of licensing the
professional. However, the granting of supplemental or secondary titles beyond
what is given in a professional licensure examination should be the responsibility
of accredited professional organizations. The practice of various medical associations
serves as a good example in recognizing different qualifications of its members by
giving titles as fellow, diplomate and others.

Although replication of this practice can be done in other professions, there


are some problems regarding its implementation. For example, when there are
several professional organizations within a profession, the question of which
organization should give accreditation and recognition and which should grant the
titles or even give continuing professional education to its members is somewhat
controversial. The problem is aggravated when these professional organizations
are competing with each other. The title and rank given by one profession may be
questioned by the competing organization and may diminish the value of the title
and professional rank granted. In addition, there are difficulties in granting
differentiated titles based on ranking as compared to titles based on professional
specialization.

Enforce Government Regulations on the Working Environment for Professionals

When tough regulations set standards that will spread internationally, they
give the nation’s professionals a head start in developing services that will be valuable
elsewhere. These strict regulations recognize the fact that they will promote
competitive advantage by stimulating and upgrading the quality of services provided
by professionals. To give value to the professions, the PRC together with the
appropriate professional regulatory board can inform the public and the
professionals which companies and establishments are complying with the
requirements in providing a conducive working environment to the practice of a
profession.

Domestic Regulation and the Trade in Service 85


Another important task of a regulatory body is the generation and
dissemination of information to the public. Instead of being viewed as a protectionist
agency shielding Filipino professionals from foreign competition, the PRC can project
a truly regulatory body of protecting consumer interest by publishing the leading
schools producing the best professionals in various fields. This measure has been
integrated in the PRC Modernization Act of 2000. It should also give regular awards
to outstanding professionals and cite them for their accomplishments in the
development of the profession. Together with the professional regulatory boards, it
should encourage the public in investigating malpractice and violations of the code
of ethics of professionals.

With the entry of foreign professionals, the PRC should educate the public
on consumer education particularly the rights of consumers of professional service
and should enjoin professionals to disclose information so that consumers may be
guided accordingly. In this light, the PRC together with the professional regulatory
boards should review the guidelines in advertising and explore this as an avenue
for disclosure.

In an environment of asymmetric information, the role of the PRC is bridge


this information gap by requiring professionals to disclose their professional
competence aside from the PRC licensure. However such disclosure may violate
the Code of Ethics of professionals regarding advertising. Thus, there is a need to
review the role of advertising in marketing professional services. Is marketing meant
to market the services of a professional that undermines his/her professional stature
or is it a legitimate means of disclosing information to the public about the
capabilities of a professional?

Focus on the Development of Specialization Among Professionals

Government has critical responsibilities for providing the fundamentals


including basic education, national infrastructure, and research in areas of broad
national concern. Yet these kinds of generalized efforts produce a not so clear impact
on the competitive advantage of professional services. Rather, the factors that
translate significant effects on competitive advantage are advanced, specialized, and
industry-related initiatives. Mechanisms such as specialized apprenticeship programs,
research efforts in universities connected with an industry, trade association activities,
and, private investments of companies ultimately create the factors that will yield
competitive advantage.

Part of this task of professional improvement and specialization is included


in continuing professional education programs particularly research, graduate
education and industry linkages. Thus, there is need to emphasize the significant
role played by research and graduate education in developing specialized

86 Education and Globalization


professionals. Given the potential market for graduate education among the huge
number of Filipino professionals, the CPE program can usher the development of
graduate studies in various fields in our universities. The tie-up of the development
of professionals with the development of HEIs can become an ideal symbiotic
relationship. The growth and development of one sector will depend on the other
sector. The presence of strong graduate programs in universities is a precondition
for the development of our professionals. On the other hand, professionals who
are seriously pursuing their continuing education programs towards the
development of specialized professionals are major factors for the development of
strong graduate programs.

Create Pressures for Innovation

A design that can significantly facilitate the international flow of professional


service providers is through mutual recognition arrangement. The discussion
towards a mutual recognition arrangement is focused on the details of recognition
mechanism, implementation, rules and procedures on licensing and safeguards.
But the main concern of local professionals and professional organizations in these
discussions is the reality of the benefits liberalization can bring to them as practicing
professionals. It has been argued that liberalization can improve the quality of
services from accountancy to taxation services but individual professionals are more
often than not apprehensive of the free entry of foreign competition.

Firms should seek out pressure and challenge, not avoid them. Part of the
strategy is to take advantage of the domestic market to create the impetus for
innovation. To do that, firms should establish norms that exceed the toughest
regulatory hurdles to stimulate upgrading of skills and productivity among
professional employees. In addition, adequate incentive schemes should be
developed so as to discourage local professionals to migrate and practice their
professions overseas. For example, giving annual awards in recognition for the
outstanding performance of professionals should help in institutionalizing this
incentive scheme together with the provision of financial resources for research,
inventions and other scientific activities of professionals. To do this, there is a need
to strengthen the pivotal role played by professional organizations in making
professionals more competitive, productive and innovative.

Monetary incentives, good working environment and avenues for


professional growth are necessary for professionals to become innovative and key
agents of change in the economy. Empowering professionals is another key factor
in keeping them in the country and preventing/minimizing migration abroad.

Domestic Regulation and the Trade in Service 87


Measures to Improve Higher Education in the Country

Improve the Faculty Qualifications

In the light of the poor qualifications of faculty where only one-third of


faculty members possess the minimum requirements to teach, there is a need to
have a massive faculty development program to upgrade and retool faculty members
in more than 1,300 institutions of higher learning all over the country. This should
be a continuous long-term program involving various forms of faculty development
programs. The core program should encourage earning of graduate degrees in various
fields here and abroad. This measure should be supplemented by attendance in
seminars and post-doctoral studies.

There are major obstacles, however, in hurdling this problem. First, financial
resources should be available to finance the cost of sending faculty members to
graduate schools. It should pay for the explicit direct cost of education as well as
the implicit opportunity cost of studying. Second, the supply of quality graduate
programs in various fields should be ready to meet the huge demand for faculty
development.

However, given that a sizable portion of students are enrolled in private


educational institutions relying mostly on student fees for operation, the private
schools cannot be expected to finance this ambitious faculty development program.
Because of the huge financial constraints, HEIs will have to be supported to some
extent by CHED together with a substantial participation by local and international
funding agencies in financing this long-term project. In addition, alternative
measures of delivering graduate education by the key institutions of higher learning
should be explored together with other programs that will yield lower costs and
minimum displacement of faculty members.

Expand Research and Improve Graduate Education

Related to the supply constraint mentioned above, there is a need to develop


and expand graduate studies beyond programs in education and business. If we
have to develop and upgrade our professionals in various fields, all these fields
should have excellent quality graduate programs available in the country. Research
and graduate education can be improved by limiting graduate education and
research to qualified universities though a flagship/consortia system. In addition,
financial incentives should be given to centers of excellence on the promotion of
research and improvement of graduate education.

Towards this end, CHED’s identification and selection of the centers of


excellence among HEIs in various disciplines can contribute towards the

88 Education and Globalization


enhancement of graduate education in the country. The roles and responsibilities of
the identified centers are to meet international academic standards by focusing on
research undertakings in order to further update and improve the system. These
institutions will be asked to extend their services to other HEIs through technology
transfer, industry linkages, sharing of expertise, technical assistance, training and
scholarships.

A common concern in graduate school in the Philippines, however, is the


length of time to complete a program, the quality and efficiency of academic courses,
thesis and research. This problem involves several issues including among others
the academic load of faculty members, inadequate support for departmental research
teams, underdeveloped culture of mentoring, lack of funds for research and graduate
scholarship. Given the complexity of the problem, some leading educators have
suggested the formation of consortium agreements and cooperation towards the
development of quality graduate programs similar to the experience of the UP
Ateneo DLSU consortium in science and math education. In addition, the expertise
of foreign experts should also be tapped to assist in improving the quality and
efficiency of our graduate programs (Nebres 1998).

Rationalization of Higher Educational Institutions

Currently, there are more than 1,300 higher educational institutions all
over the country offering various courses to more than 2 million students. There
are some 108 state universities and colleges (SUCs) that eat up more than 75 percent
of the public funding to higher education. The huge number of both private and
public HEIs, their geographic locations and program offerings have to be
rationalized because they contribute to a great extent to the poor quality of higher
education in the country.

This issue of poor quality due to the proliferation of programs in an


overexpanded tertiary education is being addressed through a moratorium on the
establishment of new programs. However, even with this policy prescription, there
is a continuous proliferation of HEIs, particularly the conversion of overgrown high
schools into state colleges and the conversion of state colleges into state universities.

An alternative avenue in rationalizing the number and spatial distribution


of HEIs in the country is through the flagship approach that would identify a
university that would be the national leader-institution in a given discipline. Zonal
universities, possibly one each in Luzon, Visayas and Mindanao, could be identified
and assigned responsibilities for training the prospective scientists and senior experts.
Regional universities would be expected to produce professionals in the numbers
needed by the region. Provincial institutes would be identified for purposes of
training skilled workers.

Domestic Regulation and the Trade in Service 89


Improve the Role of CHED in Information Dissemination

As a government body, the CHED can assist in addressing the problem of


asymmetric information between graduates of educational institutions and employers.
Upon graduation, institutions should confer meaningful degrees and certificates,
perhaps including a warranty, on their graduates. Given this, an employer or parent
should be able to trust that a degree signifies bona fide intellectual attainment, and
students might be willing to pay for education services more than its worth in the
marketplace.

To make these credentials meaningful, the CHED using its regulatory power
can require each school to adopt a reliable academic assessment system. Some of
that assessment should be common across multiple institutions and handled
externally, as a kind of academic audit. This would give customers reliable
information about the quality, effectiveness, and market value of various campuses,
and would help various stakeholders including students, parents, government
agencies, funding agencies, foundations and private philanthropists gauge the quality
of educational institutions. Given this information, stakeholders can make the
appropriate decisions regarding the school. Information dissemination as part of
the regulatory functions of CHED is a legitimate one since it addresses the
imperfections of the market instead of interfering with the market.

Rationalize the Price of Higher Education

In higher education, more than 80 percent of the students are enrolled in


over 1,200 private HEIs charging the full cost of education in their tuition and
other fees. There is wide variability in tuition across programs and schools. Almost
all private HEIs source their funds for school operations from tuition and other
student fees. With limited state support and inadequate external sources of funds,
private financing of higher education has been cited as one of the main factors for
the low quality of academic programs, lack of research activities, faculty with heavy
teaching loads and low faculty compensation in many private educational institutions.
In increasing tuition fees, private schools have to make proper consultations with
their publics. Seventy percent of the proceeds from the tuition increases are used
for salary increases, 20 percent for facilities upgrading, and 10 percent as return on
investment for school owners.

In public higher education, the increase in the number of SUCs to 108 has
resulted to a significant increase in the budgetary allocation for higher education.
More than three-fourths of the government budgetary allocation to higher education
goes to the operations of SUCs whose students account for not more than 20 percent
of total enrolment in HEIs. The wide variation of the cost per student in many
SUCs is a manifestation of the inefficient use of government funds in the delivery

90 Education and Globalization


of public higher educational services. In addition, the authority granted to SUCs to
establish autonomous branches is another avenue for them to increase their demand
for more budgetary allocations and may threaten the viability of existing private
educational institutions. For these reasons, there is a need to rationalize the SUCs
particularly in the use of limited government funds.

Proposals for the rationalization of SUCs include, among others, a moratorium


on the creation and expansion of SUCs, increase the internalization of cost of education
except for disadvantaged students, and expansion of the role of local government
units (LGUs) in financing and supporting the operations of SUCs. Because of the
huge amount of budget given to SUCs and the variability of cost per student across the
country, there is a need to rationalize government support to public HEIs taking into
account efficiency and equity considerations.

Thus, in order for the students to realize the value of higher education, a
move towards internalizing the true cost of higher education should be undertaken.
Public sector schools should start implementing full-cost pricing by charging higher
tuition fees, and by increasing the responsibility of LGUs in financing SUCs. This
prescription is based on the notion that the primary beneficiaries of higher education
are the students and therefore they should pay for the internalized benefits. However,
deserving and qualified students who cannot afford to pay must be given assistance
in the form of scholarships to address the equity issues. However, the socialized
scheme of charging tuition fees in many SUCs may not be politically feasible at this
point in time except for the University of the Philippines System.

Reforms in the Regulatory Powers of PRC

Based on a policy paper on regulatory reform on professional services, GATS


members should reform their rules and practices to increase economic competition
in the professions. In particular, governments, especially competition authorities,
should rescind or modify regulations that unjustifiably prevent entry and fix prices,
and that prohibit truthful, non-deceptive advertising about prices and service
offerings.

Member countries should make competition law applicable to professional


business services, subject to safeguards to ensure consumer protection. To do this,
governments should rescind or modify exemptions for the professions and their
regulatory bodies from the generally applicable competition law, consistent with
preserving sufficient oversight to ensure adequate quality of service. This may require
action from both national and subnational (state and provincial) authorities.

Especially for services to individual clients, consumer protection is still


necessary. To achieve it, member countries should develop innovative regulatory

Domestic Regulation and the Trade in Service 91


approaches. When they revise restrictions on entry, affiliation, and business from, the
regulator should adopt alternative approaches, such as insurance, bonding, client
restitution funds, or disciplinary control at the point of original licensing that provide
protection while permitting greater competition. Member countries may also consider
revising rules that unduly restrict the freedom of professionals to associate with other
practitioners and to opt for innovative, more efficient organizational forms.

Advancing the liberalization of international trade and investment in


professional services is an important component of regulatory reform. Member
countries should implement the policy recommendations reached at the Third
OECD Workshop on Professional Services held in February 1997: (a) professional
service providers should be free to choose the form of establishment, including
incorporation, on a national treatment basis, because alternative measures are
available to safeguard personal liability, accountability, and independence of
professional service providers; (b) restrictions on partnerships of foreign
professionals with locally-licensed professionals should be removed, starting with
the restriction on the right to temporary associations for specific projects; (c)
restriction on foreign participation in ownership of professional services firms should
n foreign participation in ownership of professional services firms should be reviewed
and relaxed, (e) local presence requirements should be reviewed and relaxed subject
to availability of professional liability guarantees or other mechanisms for client
protection; and (f) national regulatory bodies should cooperate to promote
recognition of foreign qualifications and competence and develop arrangements
from upholding ethical standards.

Governments should consider developing mutual recognition agreements


(MRAs) for various facets of “professional qualifications” such as educational
qualifications, competence, and skills. Care must be taken that MRAs do not inhibit
procompetitive national reforms by indirectly reinforcing an unsatisfactory status
quo. Multilateral consideration could also be given to development and adoption
of core requirements regulating access to services and activities, which, if widely
used, could increase transparency, reduce user costs, and stimulate competition.
The OECD could play a role in these processes.

Reforms in the Regulatory Powers of CHED

Today’s universities have three key missions: generating new knowledge;


transferring knowledge to future generations; and serving the needs of industry
and the community. However, these missions receive varying emphasis in different
types of universities, which in turn influence their impact on local economic
development.

92 Education and Globalization


Universities are no longer the detached institutions. Instead, they make an
active and positive contribution to local economic development both as external
income generators and through their contributions to image enhancement, inward
investment, spin-out new firm formation, improving the skills base, and technology
and nontechnology transfer as well as the quality of life through their social and
cultural provision. The problem, however, is that aspect of the external and internal
policy environments within which universities operate that mitigate against closer
links being forged whither one locates. The challenge facing universities is transcend
to the notion that they must either ‘think globally’ or ‘act locally’ and to develop new
ways in which they can do both. Unless this is achieved, they will be unable to retain
their three key missions of generating new knowledge, transferring knowledge and
serving their local community, and will under-perform as catalysts for local economic
development.

With globalization as a backdrop, CHED should not focus on establishing


regulatory policies that are restrictive in nature, but rather, more on developmental
policies that can enhance the competitiveness of Filipino students when they become
professionals. In addition, CHED can assist in the transformation of Philippine
universities into leading institutions of higher learning in the region.

The CHED, for example, should monitor colleges and universities in the
various professional fields. This can be made possible through the help of the
different regulatory boards who will be responsible for proper accreditation of these
different HEIs. If financial support cannot be given to universities in the light of
budget constraints, the CHED can protect the various stakeholders of education by
disseminating information regarding the status of schools on compliance with
minimum standards of teaching, facilities and other educational inputs. Disclosure
of such compliance serves two purposes. On one hand, it serves as a protection for
students and their parents and on the other hand, it motivates and pressures
educational institutions to improve.

More and more, CHED is veering away from its regulatory image and moving
towards implementing its developmental role as envisioned by the Higher Education
Act of 1994. It has organized technical panels that assist the Commission in the
review, revision and improvement of curriculum in various disciplines. At a lower
level, the approval of academic degree programs is granted upon the
recommendation of a Quality Assurance Team composed of experts in the field
drawn from the both public and private HEIs.

The role of CHED is to set standards. Although it cannot close down schools,
it can however, close down academic programs that do not meet the minimum
requirements set by the Commission. The key officials of CHED do recognize the
importance of its developmental function. However, other personnel both in the

Domestic Regulation and the Trade in Service 93


central and regional offices do not share the same view. It should be noted that over
95 percent of CHED personnel were drawn from the erstwhile Bureau of Higher
Education of DECS where the regulatory functions of a government agency was stressed.
This is being changed, albeit slowly, through the process of recruitment and human
resource development.

The task of the central office is to set standards through the cooperation of
various technical panels. It delegates the major tasks of implementation of these
standards to the regions. For example, the implementation of the scholarship program
has been decentralized using accredited institutions in identifying the potential
scholars. Another area where CHED can relax or even remove its rule is the issuance
of SO (Special Order) to students who have finished an academic degree as a
requirement for graduation.

Another aspect of improving quality through setting of standards is the


role of accreditation. Although accreditation is voluntary on the part of HEIs, CHED
encourages institutions to undergo accreditation process undertaken by various
agencies under the umbrella group of the Federation of Accrediting Agencies of
the Philippines (FAAP). Accreditation is an important factor considered by various
technical panels in awarding the centers of excellence/development to institutions
to its programs. It is also a major input in exempting institutions in some of the
requirements set by CHED in establishing new academic programs. Because of the
importance of accreditation and to fine tune the process of accreditation, the
Presidential Commission on Educational Reforms (PCER) has recommended the
formation of accrediting bodies for various disciplines.

POLICY RECOMMENDATIONS

Based on the discussion in the previous sections the following are the
recommendations:

a. There is a need to evaluate the relevance of the labor market test as


requirement for allowing foreign professionals to practice in the
country.
b. The domestic regulation governing the practice of professions should
be consistent with the overall competition policy of the country.
c. There is a need to revisit and review the rule on advertising to make it
more a tool of mandatory disclosure for all professionals.
d. The CHED should focus on its developmental functions by assisting
the development of HEIs in the areas of faculty development, research
and graduate education through financial incentives.
e. The CHED should channel its regulatory functions towards the
dissemination of information particularly on the compliance of HEIs

94 Education and Globalization


in meeting minimum academic requirements, faculty profile, student
profile, performance of students, quality of facilities and other
educational inputs.
f. The PRC should focus on its developmental function by providing
avenues for specialization within the profession and by empowering
the various professional organizations particularly in the granting of
supplemental and secondary professional titles.
g. As part of the regulatory function of the PRC, it should expand its
information dissemination activities beyond the publication of a list of
leading and worst performing schools in the production of professionals
and move towards information on market access in other countries,
avenues for professional development and compliance of establishments
with appropriate business environment for professionals.
h. The PRC should encourage the formation of outstanding professionals
and give monetary incentives to young and promising professionals as
well as give recognition to outstanding works, research, and inventions
of professionals.
i. The PRC together with CHED should sponsor and finance research
projects in various disciplines.
j. Review the rule on the entry of foreign professionals. There is a need
to adopt a more liberal rule on the entry of professors as a contribution
towards the development of research culture and graduate education
in our HEIs.
k. Review the rules on entry of foreign students. Foreign students can be
a stimulus in the development of private schools as a source of foreign
exchange. The export potentials of short-term courses in English,
information technology, business and entrepreneurship and medical
arts should be explored.
l. Review the provision of RA 8981 that removed compulsory continuing
professional education as a requirement for renewal of professional
licenses.
m. Review the provision of RA 8981 that requires only licensed and
registered professionals to teach subjects covered in licensure
examinations.

AREAS FOR FUTURE RESEARCH

a. Need to examine the perspectives of trade and professional associations


as regards domestic regulation. It would be interesting to know what role
these associations should play in the determination of rules and
regulations pertaining to the practice of professions. In a political
environment where consultation is taken seriously, should these private

Domestic Regulation and the Trade in Service 95


organizations play a key role in the formulation of domestic regulation?
What then is the implication of their participation in regulatory capture?

b. Since the basis of domestic regulation is the social risks associated with
an unregulated activity in an environment full of uncertainties, there is
also a need to study the type and costs of social risks or the threats to
public interest that become the basis for domestic regulation including
the regulations on the entry of foreign professionals into the country.

c. Since accession to international agreements may imply


internationalization of standards, a study on the social costs of
harmonization of standards and its impact on domestic regulation will
determine our readiness for harmonization. Is it worth our while to
surrender a huge part of our sovereignty in the name of international
harmonization?

d. Since foreign professionals wishing to practice domestically are usually


those that bring with them vast professional experience, there is a need
to study the feasibility of adopting a separate category for foreign
professionals willing to practice with a corresponding set of licensing
requirements and sphere of practice. Is such alternative GATS
compliant? If, not how do we make it GATS compliant?

e. A study to evaluate whether regulatory measures are indeed meant to


minimize social risks in the light of asymmetry in information or are they
domestic walls created to limit the market for professionals for local and
foreign aspirants. Is domestic regulation a form of monopolization of the
practice of professions?

f. A study to determine the possible compensating differences that may be


considered when granting recognition to foreign professionals wishing
to practice domestically.

University of the Philippines (UP). Guidebook for Foreign Students. UP


Campus Diliman: Quezon City.

96 Education and Globalization


Appendix 1

DOCUMENTARY REQUIREMENTS FOR THE ISSUANCE


OF VARIOUS PERMITS TO FOREIGN STUDENTS

9(F) STUDENT VISA UNDER EO 423 FOR FOREIGN STUDENTS:


(To be submitted in two (2) copies: Original and Photocopy)

1. Notice of Acceptance (NOA) from the school containing a clear


impression of the school’s official seal, addressed to the student;

2. Letter from the School Registrar requesting issuance of a 9(f) student visa
applicant addressed to:

The Director
Visa Division – Office of Consular Affairs
Department of Foreign Affairs

3. Five (5) copies of the 1998 Revised Original Personal History Statement
(PHS) duly signed by the applicant in English and in national
alphabet, accompanied by personal seal, if any, original left and hand
prints on PHS and original photos

4. Transcript of records/Scholastic records, duly authenticated by the


Philippine Embassy or Consulate in the applicant’s country of origin
or legal residence. “SEEN and NOTED” stamp is not acceptable;

5. A notarized Affidavit of Support and proof of adequate financial support to


cover expenses for student’s accommodation and subsistence, school
dues and other incidental expenses

6. Xerox copy Passport pages where name, photo, birth date and birthplace
appear; and

7. Certified true copy of the Certificate of Eligibility for Admission


(CEA) for students of Dentistry and Medicine.

In addition to the documents submitted to the DFA, the student shall submit
the following requirements to the Consular Officer at the Philippine Foreign Service
Post upon notice of interview:

Domestic Regulation and the Trade in Service 97


a. ORIGINAL copy of the school’s Notice of Acceptance (NOA) containing a clear
impression of the school’s dry seal, addressed to the student;

b. ORIGIINAL copy of the Certificate of Eligibility for Admission (CEA) issued by the
CHED, if enrolled in courses or programs where restrictions may exist due to
shortage of facilities, as in Medicine or Dentistry.

c. Police Clearance issued by the national police authorities in the student’s country
of origin or legal residence, authenticated by the Philippine Foreign Service
Post having consular jurisdictions over the place; and

d. Medical Health Certificate issued by an authorized physician including standard


size chest x-ray.

CERTIFICATE OF ELIGILIBITY FOR ADMISSION TO THE DENTAL COURSE OF


FOREIGN STUDENTS (CED)

1.Transcript of Records
2.Birth/Baptismal Certificate/Photocopies of passport, ACR & ICR
3.Letter of Acceptance indicating the quota of the College of Dentistry of Accepting
HEI and quota number of student
4.Application Fee in the amount of Sixty Pesos (P60.00)

CERTIFICATE OF ELIGIBILITY FOR ADMISSION TO THE MEDICAL COURSE


OF FOREIGN STUDENTS (CEM)

1. Transcript of Records showing completion of a degree course


2. Copy of Diploma or a certification of graduation authenticated by
the Registrar where he/she graduated
3. NMAT
4. Birth/Baptismal Certificate/Photocopies of Passport, ACR & ICR
and Certificate of good moral character from two (2) professors in
college
5. Letter of Acceptance indicating the quota of the College of Medicine
of Accepting HEI and quota number of student
6. Application Fee in the amount of Sixty Pesos (P60.00)

98 Education and Globalization


CERTIFICATE AUTHENTICATION/VERIFICATION (CAV)

(This is a CHEDRO delegated function but for purpose of accommodating students from far flung
regions, OSS issues CAV)

1. Transcript of Records
2. Diploma (xerox or photocopy)
3. Certification of Clinical Experience (For Nursing Only)
4. Certification of Graduation and Special Order No.
5. Application Fee of P30.00

Domestic Regulation and the Trade in Service 99


Appendix 2

Various Rules Governing the Practice of Professions in Accountancy, Architecture, Civil Engineering
and Electrical Engineering
ACCOUNTANCY ARCHITECTURE CIVIL ENGINEERING ELECTRICAL
ENGINEERING
A. Rules on the Entry of No foreign accountant No architect shall be No foreign civil engineer No foreign electrical
Professionals shall be admitted to admitted to shall be admitted to engineer shall be
examination, be given a examination, be given a examination, be given a admitted to examination,
certificate of registration certificate of registration certificate of registration be given a certificate of
or be entitled to any of or be entitled to any of or be entitled to any of registration or be entitled
the rights or privileges the rights or privileges the rights or privileges to any of the rights or
under the Board of under the Architecture under the Civil privileges under the
Accountancy law unless Law unless the country engineering law unless Board of Electrical
the country of which he is of which he is a citizen the country of which he is Engineering law unless
a citizen specifically specifically permits a citizen specifically the country of which he is
permits Filipino Filipino architects to permits Filipino civil a citizen specifically
accountants to practice practice within its engineer to practice permits Filipino electrical
within its territorial limits territorial limits on the within its territorial limits engineers to practice
on the same basis or same basis or citizens of on the same basis or within its territorial limits
citizens of such country such country ( Section citizens of such country on the same basis or
(Section 42 CA 294 on 42 CA 294 on Foreign (Section 42 CA 294 on citizens of such country
Foreign Reciprocity). Reciprocity ). Foreign Reciprocity). (Section 42 CA 294 on
Foreign Reciprocity).
The entry and stay of Article XII, Sec. 14 of the Article XII, Sec. 14. of the
professionals are subject Philippine Constitution Philippine Constitution The entry and stay of
to the labor market tests provides that the practice provides that the practice professionals are subject
and other restrictions, to of profession in the of profession in the to the labor market tests
wit; Philippines shall be Philippines shall be and other restrictions, to
limited to Filipino limited to Filipino wit:
Article XII, Sec. 14. of the citizens save in cases citizens save in cases Article XII, Sec. 14 of the
Philippine Constitution prescribed by law. prescribed by law. Philippine Constitution
provides that the practice provides that the practice
of profession in the To operationalize these To operationalize these of profession in the
Philippines shall be Constitutional provisions, Constitutional provisions, Philippines shall be
limited to Filipino Article 40 of the Labor article 40 of the Labor limited to Filipino citizens
citizens save in cases Code, as amended, Code, as amended, save in cases prescribed by
prescribed by law. provides that: Any alien provides that: Any alien law.
seeking admission to the seeking admission to the
To operationalize these Philippines for Philippines for To operationalize these
Constitutional provisions employment purposes employment purposes Constitutional provisions,
Article 40 of the Labor and any domestic or and any domestic or Article 40 of the Labor
Code, as amended, foreign employer who foreign employer who Code, as amended,
provides that: “Any alien desires to engage an desires to engage an alien provides that: Any alien
seeking admission to the alien for employment in for employment in the seeking admission to the
Philippines for the Philippines shall Philippines shall obtain Philippines for
employment purposes obtain an employment an employment permit employment purposes
and any domestic or permit from the from the Department of and any domestic or
foreign employer who Department of Labor Labor and Employment. foreign employer who
desires to engage an alien and Employment. The The employment permit desires to engage an alien
for employment in the employment permit may may be issued to a non- for employment in the
Philippines shall obtain be issued to a non- resident alien or to the Philippines shall obtain
an employment permit resident alien or to the applicant employer after an employment permit
from the Department of applicant employer after a determination of the from the Department of
Labor and Employment. a determination of the non-availability of a Labor and Employment.
The employment permit non-availability of a person in the Philippines The employment permit
may be issued to a non- person in the Philippines who is competent, able may be issued to a non-
resident alien or to the who is competent, able and willing at the time of resident alien or to the
applicant employer after a and willing at the time of application to perform applicant employer after a
determination of the non- application to perform the services for which the determination of the non-
availability of a person in the services for which the alien is desired. availability of a person in
the Philippines who is alien is desired. the Philippines who is
competent, able and competent, able and

101 Domestic Regulation and the Trade in Service


willing at the time of Republic Act No. 5181 Republic Act No. 5181 willing at the time of
application to perform requires three (3) years requires three (3) years application to perform
the services for which the of residence in the of residence in the the services for which the
alien is desired.” Philippines before a Philippines before a alien is desired.
foreigner can practice his foreigner can practice his
Republic Act No, 5181 profession. profession. Republic Act No, 5181
requires three (3) years requires three (3) years of
of residence in the residence in the
Philippines before a Philippines before a
foreigner can practice his foreigner can practice his
profession. profession.

Regulations on The mechanisms to take No person who is not a No person who is not a No foreign engineer shall
Recognition account of qualifications, citizen of the Philippines citizen of the Philippines be admitted to take a
experience, expertise at the time he applies to at the time he applies to board examination, be
acquired by foreign take the examination shall take the examination shall given a certificate of
professionals in another be allowed to take it be allowed to take it Registration, or be
economy are the unless he can prove in a unless he can prove in the entitled to any of the
provision on reciprocity. manner provided by the manner provided by the rights and privileges
Under PD 692, “The Rules of Court that, by Rules of Court that, by under this Act unless the
Revised Accountancy specific provision of law, specific provision of law, country of which he is a
Law”, specifically Sec 23 the country of which he is the country of which he is subject or a citizen
on Foreign Reciprocity a citizen, subject, or a citizen, subject or specifically permits
provides: “No foreigner national either admits national either admits Filipino engineers to
shall be admitted to the citizens of the Philippines citizens of the Philippines practice within its
examination or be to the practice of the to the practice of the territorial limits on the
registered as Certified same profession without same profession without same basis as the subjects
Public Accountant unless restriction or allows them restriction or allows them or citizens of such
he proves in the manner to practice it after an to practice it after an country. (Section 38, RA
provided for by the examination on terms of examination on terms of No. 7920)
Professional Regulation strict and absolute strict and absolute
Commission that, by equality with citizens, equality with citizens,
specific provision of law, subjects, or nationals of subjects or nationals of Exemption from
the country of which he is the country concerned the country concerned, Examination and
a citizen, subject or including the uncondi- including the Registration
national, allows citizens tional recognition of unconditional recognition
of the Philippines to the degrees issued by institu- of degrees issued by Examination and
practice of accountancy tion of learning duly institutions of learning registration shall not be
profession after an recognized for the duly recognized for the required of foreign
examination on terms of purpose by the Govern- purpose by the electrical engineers,
strict and absolute ment of the Philippines: Government of the erection/
equality with the citizens, Provided, That if he is not Philippines: Provided, commissioning/
subjects or nationals of a citizen of the Philip- That if he is not a citizen guarantee engineers
said country, including pines, and was admitted of the Philippines, and employed as technical
the unconditional to the practice of the was admitted to the consultants by the
recognition of profession in the Philip- practice of a profession in Philippine government
prerequisite degrees pines after December the Philippines after or by private firms, for
issued by the institutions 8,1941, his active practice December 8, 1941, his which the pertinent
of learning duly in that profession either active practice in that professional society
recognized by the in the Philippines or in profession, either in the certifies that no qualified
government of the the state or country where Philippines or in the state Filipino professional is
Republic of the he was practicing his or country where he was available, or foreign
Philippines. profession, shall not have practicing his profession, electrical installers for
been interrupted for a shall not have been the erection and
There are no period of two years or interrupted for a period installation of a special
automatic recognition more prior to July 4,1946, of two years or more prior project or for any other
or mutual recognition and that the country or to July 4,1946, and that specialized work, subject
agreements between state from which he the country or state from to the following
the professional comes allows the citizens which he comes allows the conditions:
bodies and their of the Philippines by citizens of the Philippines
counterparts in other specific provision of law, by specific provision of That the above-
economies. to practice the same law, to practice the same mentioned foreign
profession without profession without professionals are legally
restriction or on terms of restriction or on terms of qualified to practice their
strict and absolute strict and absolute profession in their own

103 Domestic Regulation and the Trade in Service


equality with citizens, equality with citizens, country in which the
subjects or nationals of subjects or nationals of requirements are
the country or state the country or state qualifications of
concerned. (Section 35, concerned.(Section 25, obtaining a license or
RA No. 545) RA No. 1582) certificate of registration
are not lower than those
specified in this Act;

That the scope of work to


be performed by said
foreign professionals
shall be limited only to
the particular work for
which they were
contracted;

That prior to
commencing work, the
foreign professional shall
secure a special permit
from the PRC;

That said foreign


professional shall not
engage in private
practice on their own
account;

That for every foreign


professional contracted
pursuant to this section,
one Filipino understudy
who is registered under
the provisions of this Act
shall be employed by the
private firm utilizing the
services of such foreign
professional for at least
the duration of the alien
expert’s tenure with said
firm: and

That the exemption


herein granted shall be
good only for six(6)
months; renewable for
another six(6) months at
the discretion of the
Board: Provided, that in
case the foreign
professional ceases to be
employed in accordance
with this section and
engages in an occupation
requiring registration as
electrical engineer, such
professional must be
registered under the
provisions of this Act.

105 Domestic Regulation and the Trade in Service


B. Regulations on Membership in a Membership in a Registration shall not be As prerequisite for
Registration professional body is professional body is not a required of the following registration as
not a requirement for requirement for licensing persons: professional electrical
licensing or or registration. engineer, registered
registration. Officers or enlisted men electrical engineer, and
of the United States and registered master
Philippine Armed Forces, electrician, the applicant
Issuance of Certificate of and civilian employees of registered shall comply
Issuance of Certificate of registration the Government of the with the following
Registration United States stationed in requirements:
The Professional the Philippines while
A Certificate of Regulation Commission rendering civil a. Professional Electrical
Registration as CPA shall upon engineering services for Engineer
shall be issued by the recommendation of the the United States and/or
Board of Accountancy Board, issue a certificate Philippines. For the purpose of
to those who have of registration upon confirming the service
satisfactorily passed payment of the Civil engineers or experts record and clarifying the
the examination registration fee as called in by the Philippine technical report
prescribed or provided in this Act to Government for submitted by the
otherwise complied any applicant who, in the consultation, or specific applicant for registration
with the requirements opinion of the Board and design and construction as a professional electrical
of the Board. after approval by the of fixed structures as engineer, an oral
Professional Regulation defined under this Act, examination or interview
All certificates of Commission has provided that their shall be conducted on the
registration shall show satisfactorily met all the practice shall be limited following documents to
the full name of the requirements specified in to such work. be submitted to the
registrant, shall have a this Act. Board:
serial number, and Membership in a
shall be signed by all All certificates of professional body is not a Certified experience
the members of the registration shall show requirement for licensing record from the date
Board and the the full name of the or registration. applicant took oath as a
Chairman of the registrant, shall have a registered electrical
Professional serial number, and shall engineer indicating the
Regulation be signed by all the Issuance of Certificate of inclusive dates, companies
Commission and members of the Board, registration worked for, description of
attested by the official and the Professional specific responsibilities,
seal of the Board. Regulation Commission A certificate of significant
and shall be attested by Registration for civil accomplishments as well
A certificate of the official seal of the engineer shall be issued as the name position of
registration shall not same Board. to any applicant who immediate supervisors;
be issued to any passes the examination
candidate who has The issuance of a after the approval of his Technical paper covering
been convicted by a certificate of registration ratings and upon payment an evaluation, an analysis
court of competent by the Board to the of the required fees. or a critical discussion of
jurisdiction of any registrant shall be an electrical engineering
criminal offense evidence that the person Every certificate of project or subject, on one
involving moral named therein is entitled registration shall show the or several technical
turpitude, or has been to all the rights and full name of the registrant aspects such as: design,
found guilty of privileges of a registered with a serial number, and construction, installation,
immoral or architect, while said shall be signed by the commissioning, testing,
dishonorable conduct certificate remains members of the Board operation, maintenance,
after due investigation unrevoked and and duly authenticated by repair, research and the
by the Board of unsuspended. the seal of the Board. like. The technical paper
Accountancy, or has shall be supported by
been declared to be of All registrants under this The Board for Civil engineering principles
unsound mind. Act shall be required to Engineers may refuse to and data. Published or
take a professional oath issue a certificate to any unpublished scientific
Period of validity before the Board or person convicted by a paper or treatise on
of a Professional before any person court of competent electrical engineering
License authorized to administer jurisdiction of any theories and applications
this, before commencing criminal offense involving may be considered as
The statement of the the practice of the moral turpitude, or to any complying with the
period of validity of profession. person guilty of immoral requirement;
the professional or dishonorable conduct,
license declares the or to any person of Three(3) certifications
payment of the unsound mind. signed by three(3)

107 Domestic Regulation and the Trade in Service


annual registration Period of validity of a All registrants under this professional electrical
fees for three (3) Professional license Act shall be required to engineers to the effect
years and/or take a professional oath that the experience
compliance with the The statement of the before the Board or record submitted by the
Continuing period of validity of the before any person applicant is factual and
Professional professional license authorized to administer that the technical paper
Education (CPE) and declares the payment of oaths, before submitted was actually
the validity of the the annual registration commencing the practice prepared by the applicant.
Certificate of fees for three (3) years of the profession.
registration. and/or compliance with The applicant must obtain
the Continuing Period of validity of a passing marks on the
The license unless Professional Education Professional license experience record and on
sooner revoked or (CPE) and the validity of the technical report in
suspended for cause, the Certificate of The statement of the order to qualify for
shall be valid up to the registration. period of validity of the registration as a
licensee’s birth date in professional license professional electrical
the year indicated and The license unless sooner declares the payment of engineer.
shall be renewed revoked or suspended for the annual registration
thereafter not later than cause, shall be valid up to fees for three(3) years b. Registered Electrical
the twentieth day of the the licensee’s birth date and/or compliance with Engineer
month following the in the year indicated and the Continuing
date of expiration. shall be renewed Professional Education The applicant shall pass a
Otherwise penalties thereafter but not later (CPE) and the validity of written examination on
shall be imposed. than the twentieth day of the Certificate of different subjects or
the month following the registration. group of subjects as
Membership to date of expiration. follows:
professional bodies is Otherwise penalties shall The license unless sooner
the main concern of the be imposed. revoked or suspended for 1. Mathematics
respective accredited cause, shall be valid up to
professional Membership to the licensee’s birth date 2. Engineering
organization (APO). professional bodies is the in the year indicated and Science and
Qualification and main concern of the shall be renewed Allied subject
requirements for respective accredited thereafter but not later
membership are professional organization than the twentieth day of 3. Electrical
provided for by the (APO). Qualification and the month following the Engineering
APO’S. requirements for date of expiration. professional
membership are Otherwise penalties shall subjects
provided for by the be imposed.
APO’s. The passing general
Membership to weighted average rating
professional bodies is the shall be seventy
main concern of the percent(70%) with no
respective accredited grade below fifty
professional organization percent(50%) in any
(APO). Qualification and group of subjects listed
requirements for above.
membership are provided
for by the APO’s. The examination question
on the foregoing subject
shall cover only basic
theories and principles,
and shall exclude
question based on
experience and trade
practices. The number of
questions shall be such
the examinations can be
finished in three (3)
consecutive eight-hour
days.

c. Registered Master
Electrician

The applicant shall pass a


written examination on

109 Domestic Regulation and the Trade in Service


the different subjects or
group of subjects as
follows:

1. Technical
Subjects

2. Philippine
Electrical Code,
Parts 1 & 2

Issuance of Certificate of
Registration

The registration of
professional electrical
engineer, registered
electrical engineer and
master electrician
commences from the date
his name is entered into
the roll of registrants or
licensees for his
profession. Every
registrant who
satisfactorily met all the
requirements specified in
this Act, upon payment of
the registration fee, shall
be issued a certificate of
registration. The
certificate shall remain in
full force and effect until
withdrawn, suspended or
revoked in accordance
with law.

Every certificate of
registration shall show the
full name of the registrant
with a serial number, and
shall be signed by the
members of the Board
and duly authenticated by
the seal of the Board.

All registrants under this


Act shall be required to
take a professional oath
before the Board or
before any person
authorized to administer
oaths, before
commencing the practice
of the profession.

Period of validity of a
Professional license

The statement of the


period of validity of the
professional license
declares the payment of
the annual registration
fees for three (3) years
and/or compliance with

111 Domestic Regulation and the Trade in Service


the Continuing
Professional Education
(CPE) and the validity of
the Certificate of
registration.

The license unless sooner


revoked or suspended for
cause, shall be valid up to
the licensee’s birth date
in the year indicated and
shall be renewed
thereafter but not later
than the twentieth day of
the month following the
date of expiration.
Otherwise penalties shall
be imposed.

Membership to
professional bodies is the
main concern of the
respective accredited
professional organization
(APO). Qualification and
requirements for
membership are provided
by the APO’s.

The practice of electrical


engineering is a
professional service
admission to which is
based on individual and
personal qualifications.
Hence, no firm or
corporation may be
registered or licensed as
such for the practice of
electrical engineering.

However, persons
properly qualified and
licensed as professional
electrical engineers may,
among themselves, form a
partnership, association
and collectively render
electrical engineering
service. Individual
members of such
partnerships or
associations shall be
responsible for their own
respective acts. (Section
35, RA No. 7920)

113 Domestic Regulation and the Trade in Service


Regulations of Professional firms are The practice of The practice of civil Professional firms are
Professional Firms regulated by another architecture is a engineering is a regulated by another
government agency professional service, professional service, government agency
specifically the Securities admission to which shall admission to which must specifically the Securities
and Exchange be determined upon the be determined upon and Exchange
Commission and not by basis of individual, individual and personal Commission (SEC) and
the Professional personal qualifications. qualifications. No firm , not by the Professional
Regulations Commission No firm, company, partnership, corporation, Regulation Commission.
(PRC). However, under partnership, association association or corporation
the Revised Accountancy or corporation may be may be registered or The use of international
Law, it provides that all registered or licensed as licensed as such for the or foreign firm names is
partners of partnership such for the practice of practice of geodetic regulated by another
organized for the practice architecture: Provided, engineering: Provided , government agency and
of public accountancy however, that persons however, that persons not by the Professional
shall be registered public properly registered and properly registered and Regulation Commission.
accountants in the licensed as architects licensed as civil engineers
Philippines. The may, among themselves may, among themselves or
Commissioner of and with a person or with a person or persons
Securities and Exchange persons properly properly registered and
Commission shall not registered and licensed licensed as architects,
register any corporation as civil engineers, form form and obtain
organized for the practice and obtain registration registration of a firm,
of accountancy. The of, a firm, partnership, or partnership or association
following is the outline association using the using the term
for the scope of term “Architects” or “Engineers” or “Engineers
entitlement to the “Architects and and Architects,” but ,
practice of Accountancy, Engineers, “but, nobody nobody shall be a member
to wit: shall be a member or or partner of such firm,
partner of such firm, partnership or association
A. Corporation partnership or unless he is a duly
association unless he is a licensed civil engineer or
No corporate practice of duly registered or architect, and the
Accountancy is allowed licensed architect or civil members who are civil
B. Partnerships engineer, and the engineers shall only
members who are render work and services
Must be registered with architects shall only proper for a civil
the Board of render work or services engineer, as defined in
Accountancy/ proper for an Architect this Act, and the members
Professional Regulation as defined in this Act, who are architects shall
Commission and members who are also only render work and
civil engineers shall also services proper for an
All partners must be render work and services architect, as defined in
Certified Public which are proper for a the law regulating the
accountants (CPAs) civil engineer as defined practice of architecture;
registered with Board of under the law regulating individual member of
Accountancy/ PRC the practice of civil such firms, partnership or
engineering, individual association shall be
C. Sole Proprietorships members of such firm, responsible for their own
partnership or respective acts. (Section
Must be CPAs registered association shall be 24,RA No. 1582)
with the Board of responsible for their
Accountancy/ PRC respective acts. ( Sec. 34, Professional Firms are
RA No. 545) regulated by another
If with staff composed of agency specifically the
CPAs, must be registered Professional firms are Securities and Exchange
with the Board of regulated by another Commission (SEC) and
Accountancy/PRC government agency not by the Professional
specifically the Securities Regulation Commission.
and Exchange
Commission (SEC) and The use of international
not by the Professional or foreign firm names is
Regulation Commission regulated by another
government agency and
Not applicable not by the Professional
Regulation Commission.

115 Domestic Regulation and the Trade in Service


The use of international or
foreign firm names is
regulated by another
government agency and
not by the Professional
Regulation Commission

C. Limitations and A CPA shall not advertise, The Architect shall not He shall not advertise in An electrical engineer
Restrictions on Practice or cause or allow to be use paid advertisement self-laudatory language, or should only advertise his
(Marketing Solicitation, advertised, his nor use self-laudatory, in any other manner work or merit in a simple
and Advertising) professional attainments exaggerated or derogatory to the dignity manner and avoid any
or service, except in misleading publicity. of the Profession. practice that will discredit
stating qualifications in However, the or do injury to the dignity
applications for presentation of factual and honor of his
employment. However, materials, verbal or visual profession.
publication of authorship of the aims, standards
of books, technical and progress of the
reports and studies, profession through
lectures or papers literature or by
delivered in conferences industrious application of
and seminars and similar his work or services
activities which are which tend to dignify the
beneficial to the professional or advance
profession as a whole are public knowledge of the
not considered Architect’s function in
advertising. society may be presented
through any public
A CPA in public communication media.
accounting shall not seek
to obtain clients by The Architect shall not
solicitation. solicit nor permit to
Advertising is a form of solicit his name,
solicitation. Publication advertisements or other
of an announcement is solicit in his name,
permitted only for the advertisements or other
opening of a new office, support towards the cost
change in partners, of any publication
change in office location presenting his work. He
or telephone number(s), should refrain from
or reorganization of firm taking part in paid
or practice, provided it advertisement endorsing
contains basic any materials of
information essential to construction or building
the announcement and is equipment.
of reasonable size.
The Architect shall not
mislead the public
through advertisements,
signs or printed matter
citing his professional
specializations unless
such qualifications are
well known facts or
sanctioned by
professional consensus
and years of experience.

117 Domestic Regulation and the Trade in Service


Restrictions on Fee The restriction on fee- The Architect shall He shall not participate in An electrical engineer
Setting setting provides that a charge his client for competitive bidding on a should not accept
CPA in public accounting services rendered, a price basis to secure a compensation from more
shall not offer or render professional fee professional engagement. than one interested party
professional service commensurate with the for the same professional
under an arrangement work involved and with He shall not to compete service pertaining to the
whereby no fee will be his professional standing with another engineer for same work, without the
charged unless a and experience based employment on the basis consent of all affected
specified finding or result upon the Basic Minimum of professional charges by party.
is attained, or where the Fee prescribed under the reducing his usual charges
fee is otherwise “Standards of and in this manner An electrical engineer
contingent upon the Professional Practice” of attempting to underbid should not be financially
findings or results of such the “Architects National after being informed of interested in the bids of a
services. However, a Code”. the charges named by contractor on
CPA’s fees may vary another. competitive work for
depending on the The architect shall not which he expects to be
complexity of the services undertake, under a fixed employed as an engineer,
rendered. contract sum agreement, unless he has the consent
the construction of any of his client or employer.
Fees are not regarded as project based on plans
being contingent if fined prepared by him. An electrical engineer
by courts or other public should not compete with
authorities as in the tax The Architect shall be another engineer on the
matters, or if determined compensated for his basis of compensation for
based on the results of services solely through particular work by means
judicial proceedings or his professional fee of underbidding, after
the findings of the charged directly to the the results of a public
governmental agencies. client. He shall not bidding are announced.
accept nor ask for any
other returns in whatever
form from any interested
source other than the
Client.
Appendix 3

Various Rules Governing the Practice of Professions in Aeronautical Engineering, Agricultural Engineering, Chemical Engineering
and Electronics & Communications Engineering

AERONAUTICAL AGRICULTURAL CHEMICAL ELECTRONICS &


ENGINEERING ENGINEERING ENGINEERING COMMUNICATIONS
ENGINEERING
Rules on the Entry of No foreign aeronautical No foreign agricultural The entry and stay of The entry and stay of
Professionals engineer shall be engineer shall be professionals are subject professionals are subject
admitted to examination, admitted to examination, to the labor market tests to the labor market tests
be given a certificate of be given a certificate of and other restrictions, to and other restrictions, to
registration or be registration or be entitled wit: wit:
entitled to any of the to any of the rights or
rights or privileges under privileges under the “Article XII, Section 14 of “Article XII, Section 14 of
the Aeronautical Agricultural engineering the Philippine the Philippine
engineering law unless law unless the country of Constitution provides that Constitution provides that
the country of which he which he is a citizen the practice of profession the practice of profession
is a citizen specifically specifically permits in the Philippines shall be in the Philippines shall be
permits Filipino Filipino agricultural limited to Filipino citizens limited to Filipino citizens
aeronautical engineer to engineer to practice save in cases prescribed by save in cases prescribed by
practice within its within its territorial limits law.” law.”
territorial limits on the on the same basis or
same basis or citizens of citizens of such country To operationalize these To operationalize these
such country. (Section 42 (Section 42 CA 294 on Constitutional provisions, Constitutional provisions,
CA 294 on Foreign Foreign Reciprocity). Article 40 of the Labor Article 40 of the Labor
Reciprocity). Code of the Philippines, Code of the Philippines,
Article XII, Sec. 14. Of as amended, provides as amended, provides
Article XII, Sec. 14 of the the Philippine that: “Any alien seeking that:
Philippine Constitution Constitution provides that admission to the
“Any alien seeking
provides that the practice the practice of profession Philippines for
admission to the
of profession in the employment purposes

119 Domestic Regulation and the Trade in Service


Philippines shall be in the Philippines shall be and any domestic or Philippines for
limited to Filipino limited to Filipino citizens foreign employer who employment purposes
citizens save in cases save in cases prescribed by desires to engage an alien and any domestic or
prescribed by law. law. To operationalize for employment in the foreign employer who
these constitutional Philippines shall obtain desires to engage an alien
To operationalize these provisions Article 40 of an employment permit for employment in the
Constitutional provisions, the Labor Code ,as from the Department of Philippines shall obtain
Article 40 of the Labor amended provides that Labor and Employment. an employment permit
Code, as amended, :admission to the The employment permit from the Department of
provides that: Any alien Philippines for may be issued to a non Labor and Employment.
seeking admission to the employment purposes resident alien or to the The employment permit
Philippines for and any domestic or applicant employer after a may be issued to a non
employment purposes foreign employer who determination of the non- resident alien or to the
and any domestic or desires to engage an alien availability of a person in applicant employer after a
foreign employer who for employment in the the Philippines who is determination of the non-
desires to engage an Philippines shall obtain competent, able and availability of a person in
alien for employment in an employment permit willing at the time of the Philippines who is
the Philippines shall from the department of application to perform competent, able and
obtain an employment Labor and Employment. the services for which the willing at the time of
permit from the The employment permit alien is desired.” application to perform
department of Labor and may be issued to a non- the services for which the
Employment. The resident alien or to the Republic Act No. 5181 alien is desired.”
employment permit may applicant employer after a requires three (3) years of Republic Act No. 5181
be issued to a non- determination of the non- residence in the requires three (3) years of
resident alien or to the availability of a person in Philippines before a residence in the
applicant employer after the Philippines who is foreigner can practice his Philippines before a
a determination of the competent, able and profession. foreigner can practice his
non-availability of a willing at the time of profession.
person in the Philippines application to perform
who is competent, able the services for which the
and willing at the time of alien is desired.
application to perform
the services for which the Republic Act No. 5181
alien is desired. requires three (3) years of
residence in the
Republic Act No. 5181 Philippines before a
requires three (3) years foreigner can practice his
of residence in the profession.
Philippines before a
foreigner can practice his
profession.

Rules on Registration Membership in a Membership in a Membership in a Membership in a


professional body is not a professional body is not a professional body is not a professional body is not a
requirement for licensing requirement for licensing requirement for licensing requirement for licensing
or registration. or registration. or registration. or registration.

A certificate of A certificate of The Board of Chemical Registration


Registration for Registration for Engineers shall, within
aeronautical engineer agricultural engineer one year after the i. A Certificate of
shall be issued to any shall be issued to any approval of Republic Act Registration as Registered
applicant who passes the applicant who passes the No. 318, issue certificates Electronics and
examination after the examination after the of registration as Communications
approval of his ratings approval of his ratings chemical engineer to any Engineer shall be issued
and upon payment of the and upon payment of the applicant who on the to any applicant who
required fees. required fees. date of the approval of passes the examination
Republic Act No. 318 is: hereinafter provided
Every certificate of Every certificate of upon payment of the
registration shall show the registration shall show A Filipino citizen; required fees: Provided,
full name of the registrant the full name of the that the first Board may
with a serial Number , and registrant with a serial At least 25 years of age; issue within a period not
shall be signed by the Number, and shall be exceeding two years from
members of the Board signed by the members of Of good moral character; the composition of the
the Board and duly and
121 Domestic Regulation and the Trade in Service
and duly authenticated authenticated by the seal A holder of a certificate said Board, a certificate of
by the seal of the Board. of the Board. of registration as registration as electronics
chemical engineer under and communications
The Board may refuse to The Board may refuse to Act No. 2985, as engineer, without the
issue certificate of issue certificate of amended; or a holder of necessity of undergoing
registration to any registration to any person the degree of Bachelor of the examination herein
person convicted by a convicted by a court of Science in Chemical prescribed to its members
court of competent competent jurisdiction of Engineering (B.S.Ch.E) and to any applicant who,
jurisdiction of any any criminal offense or its equivalent, and has with his application for
criminal offense involving moral practiced the profession registration as electronics
involving moral turpitude, or to any as defined in this Act for and communications
turpitude, or to any person guilty of a period of not less than engineer, shall present
person guilty of unprofessional, five years. evidence or other proof
unprofessional, unethical, immoral or satisfactory to the Board
unethical, immoral or dishonorable conduct, or Provided, however, that showing (a) that he has a
dishonorable conduct, or to any person of unsound persons who on the date specific record of at least
to any person of mind. of the approval of ten years of active practice
unsound mind. Republic Act No. 318 are in electronics and/or
All registrants under this employed in industrial communications
All registrants under this Act shall be required to plants and have been engineering, (b) that he is
Act shall be required to take a professional oath engaged in the practice
take a professional oath before the Board or of chemical engineering ii. of a responsible
before the Board or before any person service for a period of at character indicating that
before any person authorized to administer least five years without he may be entrusted to
authorized to administer oaths, before serious accident as perform or render
oaths, before commencing the practice certified to by their professional electronics/
commencing the of the profession. employers may be communica tions
practice of the granted, upon engineering service as
profession. The statement of the application within one defined in R.A. No. 5734,
period of validity of the year after the approval and (c) who is a bona fide
The statement of the professional license hereof and in the member of any officially
period of validity of the declares the payment of discretion of the Board, a registered association of
professional license the annual registration certificate of proficiency electronics and
declares the payment of fees for three(3) years in that branch of communications
the annual registration and/or compliance with chemical engineering engineers in the
fees for three(3) years the Continuing wherein he had been Philippines.
and/or compliance with Professional Education practicing. Such
the Continuing (CPE) and the validity of certificate shall entitle
Professional Education the Certificate of the holder to practice in
(CPE) and the validity of registration. that branch of chemical iii. Every certificate
the Certificate of engineering for which he or registration shall show
registration. The license unless sooner has qualified. the full name of the
revoked or suspended for registrant with a serial
The license unless sooner cause, shall be valid up to Every certificate of number, and shall be
revoked or suspended for the licensee’s birth date registration shall show signed by the members of
cause, shall be valid up to in the year indicated and the full name of the the Board, attested to by
the licensee’s birth date shall be renewed registrant, have a serial the Secretary of the Board
in the year indicated and thereafter but not later number, and be signed by of Examiners and duly
shall be renewed than the twentieth day of the members of the authenticated by the
thereafter but not later the month following the Board, the Chairman of official seal of the Board.
than the twentieth day of date of expiration. the Professional
the month following the Otherwise penalties shall Regulation Commission The certificate of
date of expiration. be imposed. and shall be registration issued by the
Otherwise penalties shall authenticated by the Board to the registrant
be imposed. Membership to official seal of the Board. shall be evidence that the
professional bodies is the person named therein is
Membership to main concern of the A Certificate of entitled to the rights and
professional bodies is the respective accredited Registration as Chemical privileges of a registered
main concern of the professional organization Engineer shall be issued electronics and
respective accredited (APO). Qualification and to any applicant who communications engineer
professional organization requirements for passes the examination while said certificate
(APO). Qualification and membership are provided hereinafter provided remains in force or
requirements for for by the APO’s. upon payment of the unrevoked.
membership are provided required fees.
for by the APO’s. Professional Firms are iv.
regulated by another

123 Domestic Regulation and the Trade in Service


Professional Firms are government agency All applications must be v. All applications
regulated by another specifically the Securities filed with the Professional must be filed with the
government agency and Exchange Regulation Commission Professional Regulation
specifically the Securities Commission (SEC) and and shall be subject to Commission and shall be
and Exchange not by the Professional the payment of the fees subject to the payment of
Commission (SEC) and Regulations Commission. prescribed by the the fees prescribed by the
not by the Professional Professional Regulation Professional Regulation
Regulation Commission. Commission. Commission.

The use of international The regulated activities Membership to


or foreign firm names is can not be carried out by professional bodies is the
regulated by another holders of a foreign main concern of the
government agency and license except, in cases respective accredited
not by the Professional where such foreign professional organization
Regulation Commission. professional have been (APO). Qualifications and
granted Special requirements for
Temporary Permit by the membership are provided
Board of Chemical for by the APO’s.
Engineering and by the
PRC. Professional firms are
regulated by another
Membership to government agency
professional bodies is the specially the Securities
main concern of the and Exchange
respective accredited Commission (SEC) and
professional organization not by the Professional
(APO). Qualifications Regulations Commission
and requirements for (PRC).
membership are provided
The use of international
for by the APO’s.
or foreign names are
Yes. Professional firms are
regulated by another
government agency regulated by the
specially the Securities Securities and Exchange
and Exchange Commission (SEC) and
Commission (SEC) and not by the Professional
not by the Professional Regulation Commission.
Regulation Commission
(PRC). However, under
the Chemical
Engineering Law, it
provides that a firm, co-
partnership, company,
corporation, or
association can engage in
the practice of chemical
engineering in the
Philippines, provided
only that such practice is
carried out by chemical
engineers holding valid
certificates of registration
and in the regular
employ of said firm, co-
partnership, company,
corporation or
association, or by persons
holding valid certificates
of proficiency issued by
the Board for the
particular branch of
chemical engineering
involved in such practice.

125 Domestic Regulation and the Trade in Service


In case of a firm, co-
partnership, company,
corporation or
association, the manager,
administrator or the
person who has charge of
the management or
administration of the
business shall be held
personally liable for any
violation of R.A. No. 318.

The use of international


or foreign names are
regulated by the
Securities and Exchange
Commission (SEC) and
not by the Professional
Regulation Commission.

The mechanism to take


account of qualifications,
experience, expertise
acquired by foreign
professionals in another
economy is the provision
on reciprocity. Under
Republic Act No. 318,
“Chemical Engineering
Law” specifically Section
26 on Foreign Reciprocity
provides: “Except in the
case of persons otherwise
exempt under the
provisions of this Act, no
foreign chemical engineer
shall be granted any of
the rights or privileges
under this Act, unless the
country of which he is a
subject or citizen permits
Filipino chemical
engineers to practice
within its territorial limits
on the same basis as the
subjects or citizens of such
country.

Exemption from
Registration:
Registration shall not be
required of the
following classes of
persons upon proper
application for
exemption with the
Board of Chemical
Engineering:
Foreign chemical
engineers called in by the
Republic of the
Philippines for
consultation or for a

127 Domestic Regulation and the Trade in Service


specific design or
installation, or project:
Provided, that their
practice shall be confined
to such work: And
provided, further, that
said engineers are legally
qualified to practice
chemical engineering in
their own state or country
and that the requirements
and qualifications for
obtaining a certificate of
registration in said state
or country are not lower
than those specified in
Republic Act No. 318.

Foreigners employed as
technical officers,
professors, or consultants
in such special branches
of chemical engineering
as may, upon the
recommendation of the
Board and in the
Exemption from Registration judgment of the
- Registration for practice Chairman of the
as agricultural engineers Professional Regulation
shall not be required of Commission (PRC), be
the following: necessary and
indispensable for the
country: Provided,
a. Agricultural however, That they do not
engineers from other engage in private practice
countries called in at their own account as
consultation only and chemical engineers.
exclusively in specific
Foreigners who, on the
cases. And those who are
date of the approval of
attached and
Republic Act No. 318,
organizations and
had been in the actual
assigned to perform
and bona fide practice
certain definite work in
of chemical engineering
the Philippines, provided
for at least five (5) years
they do not engaged in
in the Philippines as
private practice on their
certified by the
own accounts agricultural
Chairman of the
engineers in the
Professional Regulation
Philippines;
Commission.
b. Agricultural
Foreigners who, on the
engineers attached to the
date of the approval of
Armed Forces of the
Republic Act No. 318, had
United States stationed in
been in the actual and
the Philippines whose
bona fide practice of
rendering services as such
chemical engineering in The mechanism to take
only for the said armed
their respective countries account of qualifications,
forces and within the
for at least five (5) years: experience, expertise
limits of their territorial
Provided, that no foreign acquired by foreign
jurisdiction; and
chemical engineer shall professionals in another
be allowed to practice his economy is the provision
Foreign agricultural
profession in the on reciprocity. Under
engineers employed as
Philippines unless the R.A. No. 5734, “The
exchange professors or
country of which he is a Electronics and
instructors in recognized
citizen or subject permits Communications
local schools, institutes,

129 Domestic Regulation and the Trade in Service


Rules on Recognition Upon application and colleges or universities Filipino chemical Engineering Act of the
payment of the required where a regular course in engineers to practice their Philippines” specifically
fee, and subject to agricultural engineering is profession within its Section 23 on Foreign
approval of the taught. (Sec. 10 R.A. No. territorial limits Reciprocity provides: “No
Commission, the 3927) foreigner shall be
following may be granted admitted to an
temporary certificates of Foreign Reciprocity - examination or
registration as Notwithstanding the registration as electronics
aeronautical engineering requirement of section 12 and communications
in the Philippines; of R.A. No. 3927, that the engineer under this Act
applicant for examination unless he proves in the
a. Aeronautical for the practice of manner as provided by
engineers from foreign agricultural engineer the Board that, by specific
countries called for must be a Filipino citizen, provisions of law, the
consultation or for a any foreigner who meets country, state or province
specific design, other requirements of of which he is a citizen,
construction or project, said Act may be admitted subject, or national admits
whose services in the for examination if he Filipino citizens to the
Philippines shall be proves to the satisfaction practice of electronics and
limited only to such of the Board, that by communications
particular work, and such specific provision of law, engineering after an
engineers are legally or the country of which he is examination on terms of
technically qualified to a citizen, either admits strict and absolute
practice aeronautical Filipino citizen to the equality with the citizens,
engineering in their own practice of agricultural subjects, or national of
country, and engineering without said country, including
restriction or allows them the unconditional
b. to practice agricultural recognition of
engineering after passing prerequisite degrees
c. Any person from and examination on terms issued by institutions of
foreign countries of strict and absolute learning duly recognized
employed as technical equality with citizens, by the Government of the
officers or professors in Philippines.
such specialized branches
of aeronautical subjects, or nationals of
engineering as may, in the said country, including
judgement of the the unconditional
Commission be necessary recognition of pre-
and indispensable for the requisite degrees granted
country. by institutions of learning
duly recognized by the
Subject to approval of the Government of the
Commission, the Board Philippines. (Sec.26 R.A.
may issue a special permit, 3927)
renewable every year, to
any person specified
under this section who
shall file with it an
application for the
issuance of such permit,
accompanied by evidence
or other proof satisfactory
to the Board showing that
the applicant is
competent to perform the
service or activity for
which said permit is
sought, and that the
issuance of such permit
will not jeopardize the
interest of any citizen of
the Philippines duly
registered as aeronautical
engineer under this
Decree: Provided, that
such permit shall be
subject to the rules and

131 Domestic Regulation and the Trade in Service


regulations of the Board,
and may be suspended,
revoked, or reissued by
the Board in the manner
prescribed for the
suspension, revocation
and reissuance of the
certificate of registration.
(Section 21, RA No. 1570)

The Commission may,


upon recommendation of
the Board concerned,
approve the registration
and authorize the
issuance of a certificate of
registration with or
without examination to a
foreigner who is
registered under the laws
of his country: Provided,
that the requirements for
the registration or
licensing in said foreign
state or country are
substantially the same as
those required and
contemplated by the laws
of the Philippines and
that the laws of such
foreign country or state
allow the citizens of the
Philippines to practice the
profession on the same
basis and grant the same
privileges as the subjects
or citizens of such foreign
state or country: Provided,
further, that the applicant
shall submit competent
and conclusive
documentary evidence,
confirmed by the
Department of Foreign
Affairs showing that his
country’s existing laws
permit citizens of the
Philippine to practice the
profession under the rules
and regulations governing
citizens thereof: Provided,
finally, that the
Commission may, upon
recommendation of the
Board concerned, and
approval of the President,
authorize the issuance of
a certificate of registration
without examination or a
temporary special permit
to practice the profession
to any foreigner
regardless of whether or
not reciprocity exists in
the practice of his
profession between his

133 Domestic Regulation and the Trade in Service


country and the
Philippines and under
such conditions as may be
determined by the
Commission, if such
foreigner is
internationally known to
be an outstanding expert
in his chosen profession
or a well known specialist
in any of its branches, and
that his services are
urgently necessary either
for lack of inadequacy of
local experts or if his
services will promote the
advancement of the
profession in the
Philippines. (Section 5 (
j), Presidential Decree
No. 223)

There is no restriction
on advertising, soliciting
and marketing
Limitations and Restriction on Advertising He should, in the public A Chemical Engineer An Electronics and
restrictions on the interest and to maintain shall not indulge in self- Communications
- He shall be dignified in
Practice of Profession the standards of the laudatory advertisement Engineer shall not
explaining and discussing
profession, observe the nor make exaggerated accept any other
his work and shall refrain
principles of reasonable untrue, or misleading compensation, financial
from self-laudatory
or adequate statements in media or or otherwise, except
advertising or
compensation for those any public forum. from one interested
propaganda.
engaged in agricultural party for a particular
engineering work, service or other services
including those employed related therewith
in subordinate capacities without the consent of
(Sec. 5 c Code of Ethics) all parties concerned.

He should not take away An Electronics and


from another engineer a Communications
prospective employment Engineer shall not
after becoming aware that accept commissions or
definite steps have been allowances, directly or
taken by the latter toward indirectly, from
consummation. (Sec. 5 g contractors, suppliers
Code of Ethics) and all other parties
dealing with his clients
He should not resort to and/or employers in
unfair competition by connection with the
underbidding or work for which he is
reducing the usual fees responsible.
after acquiring
information as to the fees An Electronics and
offered by the other Communications
engineers from similar Engineer shall not be
services. (Sec. 5h Code of financially interested in
Ethics) the bid or bids of
contractors, suppliers
and other interested
135 Domestic Regulation and the Trade in Service
parties participating in
a competitive work or
job on which he has
been employed as
engineer without full
knowledge and consent
of his clients or
employers.

Restriction on Fee setting He shall uphold the A Chemical Engineer Electronics and
principle of appropriate shall not accept Communications
and adequate compensation, financial Engineer shall uphold
compensation for those or otherwise from more the principle of
engaged in engineering than one client or appropriate and
profession, including employer who is in the adequate compensation
those in the subordinate same line of business or for those engaged in
capabilities in the interest has conflicting interest the engineering
of public service and with the others, without profession, including
maintain the standards of the consent of all parties; those in the
profession. subordinate capacities,
He shall not accept in the interest of public
He shall not compete, by compensation directly or service and
underbidding through indirectly from parties maintenance of the
reduction in his normal dealing with his client or standards of the
fees on the basis of employer except with the profession.
charges for work, after consent of his client or
having been informed of employer. An Electronics and
the charges submitted by Communications
another engineer. Fees are not regarded as Engineer shall not
being contingent if fined compete, by
by courts or other public underbidding, through
authorities as in the tax reduction in his normal
matters, or if determined fees on the basis of
based on the results of charges for work, after
judicial proceedings or having been informed of
the findings of the the charges submitted by
governmental agencies. another engineer.

Fees are not regarded


as being contingent if
fined by courts or other
public authorities as in
the tax matters, or if
determined based

137 Domestic Regulation and the Trade in Service


Appendix 4
Various Rules Governing the Practice of Professions in Geodetic Engineering, Mechanical Engineering, Metallurgical Engineering,
and Mining Engineering

GEODETIC MECHANICAL METALLURGICAL MINING


ENGINEERING ENGINEERING ENGINEERING ENGINEERING

Rules on the Entry of No foreign geodetic No foreign mechanical No foreign metallurgical No foreign mining
Professionals engineer shall be engineer shall be engineer shall be engineer shall be
admitted to examination , admitted to admitted to admitted to examination,
be given a certificate of examination, be given a examination, be given a be given a certificate of
registration or be entitled certificate of registration certificate of registration registration or be
to any of the rights or or be entitled to any of or be entitled to any of entitled to any of the
privileges under the the rights or privileges the rights or privileges rights or privileges under
Board of Geodetic under the Board of under the Metallurgical the Mining Engineering
Engineering Law unless Mechanical Engineering Engineering Law unless Law of the Philippines
the country of which he is Law unless the country the country of which he unless the country of
a citizen specifically of which he is a citizen is a citizen specifically which he is a citizen
permits Filipino geodetic specifically permits permits Filipino specifically permits
engineers to practice Filipino mechanical metallurgical engineer Filipino mining engineer
within its territorial limits engineers to practice to practice within its to practice within its
on the same basis or within its territorial territorial limits on the territorial limits on the
citizens of such country limits on the same basis same basis or citizens of same basis or citizens of
(Section 42 CA 294 on or citizens of such such country (Section 42 such country (Section 42
Foreign Reciprocity). country (Section 42 CA CA 294 on Foreign CA 294 on Foreign
294 on Foreign Reciprocity ). Reciprocity ).
The entry and stay of Reciprocity).
professionals are subject Article XII, Sec. 14. Of Article XII, Sec. 14. Of the
to the labor market tests The entry and stay of the Philippine Philippine Constitution
and other restrictions, to professionals are subject Constitution provides provides that the practice
wit: to the labor market tests that the practice of of profession in the
profession in the Philippines shall be
“Article XII, Section 14 of and other restrictions, Philippines shall be limited to Filipino citizens
the Philippine to wit: limited to Filipino save in cases prescribed by
Constitution provides that citizens save in cases law.
the practice of profession Article XII, Sec. 14. Of prescribed by law.
in the Philippines shall be the Philippine To operationalize these
limited to Filipino citizens Constitution provides To operationalize these Constitutional provisions,
save in cases prescribed by that the practice of Constitutional Article 40 of the Labor
law.” profession in the provisions, Article 40 of Code, as amended,
Philippines shall be the Labor Code, as provides that: Any alien
To operationalize these limited to Filipino amended, provides that: seeking admission to the
Constitutional provisions, citizens save in cases Any alien seeking Philippines for
Article 40 of the Labor prescribed by law. admission to the employment purposes
Code of the Philippines, Philippines for and any domestic or
as amended, provides To operationalize these employment purposes foreign employer who
that: Constitutional and any domestic or desires to engage an
provisions, Article 40 of foreign employer who alien for employment in
“Any alien seeking the Labor Code, as desires to engage an the Philippines shall
admission to the amended, provides that: alien for employment in obtain an employment
Philippines for Any alien seeking the Philippines shall permit from the
employment purposes admission to the obtain an employment department of Labor and
and any domestic or Philippines for permit from the Employment. The
foreign employer who employment purposes department of Labor employment permit may
desires to engage an alien and any domestic or and Employment. The be issued to a non-
for employment in the foreign employer who employment permit may resident alien or to the
Philippines shall obtain desires to engage an be issued to a non- applicant employer after
an employment permit alien for employment in resident alien or to the a determination of the
from the Department of the Philippines shall applicant employer after non-availability of a
Labor and Employment. obtain an employment a determination of the person in the Philippines
The employment permit permit from the non-availability of a who is competent, able
may be issued to a non department of Labor person in the and willing at the time of
resident alien or to the and Employment. The Philippines who is application to perform
applicant employer after a employment permit may competent, able and the services for which the
determination of the non- be issued to a non- willing at the time of alien is desired.

139 Domestic Regulation and the Trade in Service


availability of a person in resident alien or to the application to perform Republic Act No. 5181
the Philippines who is applicant employer after the services for which requires three (3) years
competent, able and a determination of the the alien is desired. of residence in the
willing at the time of non-availability of a Philippines before a
application to perform person in the Republic Act No. 5181 foreigner can practice his
the services for which the Philippines who is requires three (3) years profession.
alien is desired.” competent, able and of residence in the
willing at the time of Philippines before a
Republic Act No. 5181 application to perform foreigner can practice
requires three (3) years of the services for which his profession.
residence in the the alien is desired.
Philippines before a
foreigner can practice his Republic Act No, 5181
profession. requires three (3) years
of residence in the
Philippines before a
foreigner can practice his
profession.

Regulations on No foreigner shall be No foreign mechanical Registration shall be Practitioners in mining


Recognition admitted to examination engineer or mechanic required of the following engineering engaged by
or registration as shall be allowed to classes of persons upon the Republic of the
geodetic engineer under practice mechanical proper application for Philippines for
this Act unless he proves engineering or be given a exemption with the Board consultation or for
in the manner provided certificate of registration of Metallurgical specific purposes
or be entitled to any of Engineering: regarding the mining
for by the Rules of Court
the privileges under this industry: Provided that
that, by specific
Act unless he can prove in Foreign consultants, heir practice shall b3e
provisions of law, the engineers and technicians
the manner provided by confined to such work
country of which he is a the rules of Court or by called in by the Republic only.
citizen, subject or specific provisions of law of the Philippines for
national, admit Filipino or regulations, that the consultation or for Foreigners employed by
citizens to the practice of country of which he is a specific assignment or private firms as technical
geodetic engineering subject or citizen, in the project; consultants in branches of
after an examination on spirit of reciprocity, mining engineering, for
terms of strict and permits Filipino Foreign consultants, which the pertinent
mechanical engineers engineers and technicians professional society
absolute equality with the
and/or mechanics to employed by private firms certifies that no qualified
citizens, subjects or
practice within its for which the pertinent Filipino is available, the
national of said country,
territorial limits on the profession society certifies Board may, at its
including the that no qualified Filipino
same basis as the subject discretion, allow them to
unconditional or citizens of such country is available, in which case practice without
recognition or or state.( Sec. 39, RA No. the court may, in its registration subject to the
prerequisite degrees 8495) discretion, allow them to following conditions: That
issued by institutions of practice without the applicant’s curriculum
learning duly recognized The following shall be registration: Provided, vitae shall be submitted to
by the Government of required to secure a that the private firm the Board on or before
the Philippines. (Section Temporary/Special shows justification for the arrival in the country;
31, RA No. 4374) Permit from the Board need of said consultants, That the applicant will
subject to the approval by engineers, technician to not engage in private
the Commission: the satisfaction of the practice on his own
Board: Provided further, account;
Mechanical engineers, that the period of
installation, commission employment shall be for i. That for every
or guarantee engineers one (1) year extendable applicant one
from other countries for another year but not Filipino
called in for consultation to exceed three (3) years understudy who is
or for a specific design or for any one individual. registered under
installation, project not the provision of
requiring more than Employment of foreigners this Act be
three(3) months under paragraphs (a) and employed by the
residence in the (b) shall be subject to the private firm
Philippines in a following conditions: utilizing the
twelve(12) month period: services of such
Provided, That such
141 Domestic Regulation and the Trade in Service
engineers are legally That the applicant is of applicant for at
qualified to practice good reputation and least the duration
mechanical engineering moral character; of the alien
in their own country or expert’s tenure
state in which the That the applicant’s with said firm; and
requirements and curriculum vitae and
qualifications for detailed description of his ii. That the
obtaining a certificate of assignment shall be exemption shall
registration are at least submitted to the Board be good only for
equal to or more than together with his six months
those specified in this Act application for renewable for
as certified by the Board; exemption; another six
months at the
1. Foreigners That the applicant will discretion of the
employed as not engaged in private Board: Provided,
technical practice on his own that in case the
officers, training account; applicant ceases to
officers or be employed in
consultants in That for every applicant the categories
such special one Filipino understudy provided in
branches of who is registered under paragraphs (A)
mechanical P.D. No 1536 shall be and (B) hereof,
engineering employed by the private and engages in an
who, in the firm utilizing the services occupation
judgment of the of such applicant for at requiring
Board are least the duration of the registration as
necessary and foreign expert’s tenure mining engineer,
advantageous for with said firm; and such person must
the country be registered
particularly in That the applicant is under the
the aspect of legally qualified to provisions of this
technology practice his profession in Act: Provided,
transfer, may be his own state or country further, That those
issued temporary and that the country of falling under
permits: which he is a citizen or paragraphs (A)
Provided, that subject permits Filipino and (B) of this
such Metallurgical engineers section should first
engagements and metallurgist to secure a certificate
have satisfied practice their profession of exemption from
conditions, as within its territorial limits. the Board: And,
may be deemed (Section 13, P.D. No. provided, finally,
necessary as 1536) that each private
follows: firm shall be
The Commission may, allowed a
2. upon recommendation of maximum of three
the Board concerned, consultants at any
a. Non-availability approve the registration one time.
of a mechanical and authorize the
engineer and/or issuance of a certificate of Petitioners who are
mechanic in the registration with or registered mining
country who is without examination to a engineers or are certified
competent, able foreigner who is as mine, mill or quarry
and willing at the registered under the laws foreman under Act No.
time of of his country: Provided, 2985, as amended, and
engagement to that the requirements for under the rules and
perform the the registration or regulations promulgated
service for which licensing in said foreign thereunder, shall ipso-
the foreigner is state or country are facto be recognized and
desired for; substantially the same as registered under this Act,
those required and and shall be allowed to
b. The foreigner contemplated by the laws retain their certificates
must have been of the Philippines and issued by the former
in prior employ that the laws of such Boards of Examiners.
of the engaging foreign country or state
firm, or its allow the citizens of the The Commission may,
foreign business Philippines to practice the upon recommendation of

143 Domestic Regulation and the Trade in Service


partner, outside profession on the same the Board concerned,
of the basis and grant the same approve the registration
Philippines for a privileges as the subjects and authorize the
period of not less or citizens of such foreign issuance of a certificate of
than one(1) year state or country: Provided, registration with or
immediately further, That the without examination to a
preceding the applicant shall submit foreigner who is
date of his competent and conclusive registered under the laws
engagement; documentary evidence, of his country: Provided,
confirmed by the that the requirements for
c. Any particular or Department of Foreign the registration or
specific Affairs showing that his licensing in said foreign
engagement shall country’s existing laws state or country are
not be in excess permit citizens of the substantially the same as
of six(6) months Philippine to practice the those required and
but may be profession under the rules contemplated by the laws
renewed once, if and regulations governing of the Philippines and
necessary, except citizens thereof: Provided, that the laws of such
when such finally, that the foreign country or state
engagement is Commission may, upon allow the citizens of the
for a newly recommendation of the Philippines to practice the
established firm Board concerned, and profession on the same
in which case the approval of the President, basis and grant the same
period of authorize the issuance of privileges as the subjects
engagement may a certificate of registration or citizens of such foreign
be for a longer without examination or a state or country: Provided,
term but not to temporary special permit further, That the
exceed a total to practice the profession applicant shall submit
term of two(2) to any foreigner competent and conclusive
years.(Sec.31, RA regardless of whether or documentary evidence,
No. 8495) not reciprocity exists in confirmed by the
the practice of his Department of Foreign
profession between his Affairs showing that his
country and the country’s existing laws
Philippines and under permit citizens of the
such conditions as may be Philippine to practice the
determined by the profession under the rules
Commission, if such and regulations governing
foreigner is citizens thereof: Provided,
internationally known to finally, that the
be an outstanding expert Commission may, upon
in his chosen profession recommendation of the
or a well known specialist Board concerned, and
in any of its branches, and approval of the President,
that his services are authorize the issuance of
urgently necessary either a certificate of registration
for lack of inadequacy of without examination or a
local experts or if his temporary special permit
services will promote the to practice the profession
advancement of the to any foreigner
profession in the regardless of whether or
Philippines. (Section 5 (J), not reciprocity exists in
Presidential Decree No. the practice of his
223) profession between his
country and the
Philippines and under
such conditions as may be
determined by the
Commission, if such
foreigner is
internationally known to
be an outstanding expert
in his chosen profession
or a well known specialist
in any of its branches, and
that his services are

145 Domestic Regulation and the Trade in Service


urgently necessary either
for lack of inadequacy of
local experts or if his
services will promote the
advancement of the
profession in the
Philippines. (Section 5 (
j), Presidential Decree
No. 223)

Membership in a
professional body is not
a requirement for
licensing or registration.

Issuance of Certificate of
registration

• A certificate of
Registration for
mining
engineer shall
be issued to any
applicant who
passes the
examination
after the
approval of his
ratings and
upon payment
of the required
fees.

• Every certificate
of registration
shall show the
full name of the
registrant with a
serial number ,
and shall be
signed by the
Rules on Registration Membership in a Membership in a Membership in a members of the
professional body is not a professional body is not a professional body is not Board and duly
requirement for licensing requirement for licensing a requirement for authenticated by
or registration. or registration licensing or registration. the seal of the
Board.
Issuance of Certificate of Issuance of Certificate of Issuance of Certificate
registration registration of registration – The • The Board may
Board of Metallurgical refuse to issue
A certificate of A certificate of Engineers shall issue certificate of
registration for geodetic registration shall be issued certificates of registration to
engineer shall be issued upon payment of the registration to: any person
to any applicant who registration fee to any convicted by a
passes the examination applicant who has Examinees who have court of
after the approval of his satisfactorily met all the successfully passed the competent
ratings and upon requirements for the board examinations for jurisdiction of
payment of the required particular grade he is metallurgical engineers any criminal
fees: Provided, that upon registering. and have complied with offense
payment of the required the requirements of the involving moral
fees, the Board may issue • All certificates rules and regulations turpitude, or to
within a period of not of registration prescribed by the Board: any person
exceeding two years after shall show the guilty of
the approval of this act, a full name of the unprofessional,

147 Domestic Regulation and the Trade in Service


certificate of registration registrant, shall a. Persons who unethical,
as geodetic engineer, have a serial have applied for immoral or
without the necessity of number , and registration dishonorable
undergoing the shall be signed without conduct, or to
examination herein by all the examination any person of
prescribed, to any members of the and who posses unsound mind.
applicant , who: Board and shall the
be attested by qualifications • All registrants
a. Is a holder of a the official listed in Section under this Act
registration seal.The 16 P.D. No. 1536 shall be
certificate as issuance of a and have required to take
private, or certificate of complied with a professional
mineral or registration by the oath before the
cadastral land the Board shall requirements of Board or before
surveyor; be evidence that the rules and any person
the person regulations authorized to
b. Is a graduate of named therein prescribed by administer
a recognized is entitled to all the Board; and oaths, before
course in he privileges of commencing
surveying and a registered b. Applicants for the practice of
has passed the mechanical Metallurgical the profession.
Civil Service engineer, Plant Foreman
examination as certified plant as approved by Period of validity of a
assistant mechanic, as the Board. All Professional license
surveyor, or the case maybe, certificates of
assistant mineral while the said registration The statement of the
land surveyor, or certificate shall state the period of validity of the
mineral land remains full name of the professional license
surveyor, or unnerved or registrant, shall declares the payment of
senior unsuspended. have a serial the annual registration
cartographer, number and fees for three(3) years
supervising • The Board shall shall be signed and/or compliance with
computer, and not issue a by all members the Continuing
has practiced certificate of of the Board, Professional Education
field surveying registration to the CPE) and the validity of
for at least any person Commissioner the Certificate of
twenty years in convicted by of the PRC, and registration.
and/or out of court of shall be attested
the government competent to by the official The license unless
service; or jurisdiction of seal of the sooner revoked or
any crime Board: suspended for cause,
c. Is a involving moral Provided, that shall be valid up to the
commissioned turpitude, or the issuance of licensee’s birth date in
line officer of immoral or certificate of the year indicated and
the Bureau of dishonorable registration by shall be renewed
coast and conduct or any the Board to a thereafter but not later
geodetic Survey person of registrant shall than the twentieth day
or a retired unsound mind be evidence that of the month following
offer of the said declared by a the person the date of expiration.
Bureau who has court of named therein Otherwise penalties shall
at least five (5) competent is entitled to all be imposed.
years of jurisdiction. rights and
continuous privileges of a Membership to
practice service • All registrants Registered professional bodies is
as a under this Act Metallurgical the main concern of the
commissioned shall be Engineer or respective accredited
line officer at required to take Metallurgical professional
the time of professional Plant Foreman organization (APO).
retirement. oath before the while said Qualification and
Board or before certificate requirements for
Every certificate of any person remains membership are
registration shall show authorized to unrevoked or provided for by the
the full name of the administer unsuspended. APO’s.
registrant with a serial oaths, before (Sec. 20 P.D.
Number and shall be commencing No. 1536) Professional Firms are
signed by the members of regulated by another

149 Domestic Regulation and the Trade in Service


the Board and duly the practice of Every certificate of government agency
authenticated by the seal profession. registration shall show specifically the Securities
of the Board. the full name of the and Exchange
Period of validity of a registrant with a serial Commission (SEC) and
All registrants under this Professional license number , and shall be not by the Professional
Act shall be required to signed by the members Regulations
take a professional oath The statement of the of the Board and duly Commission.
before the Board or period of validity of the authenticated by the seal
before any person professional license of the Board. The use of international
authorized to administer declares the payment of or foreign firm names is
oaths, before the annual registration All registrants under this regulated by another
commencing the practice fees for three (3) years Act shall be required to government agency and
of the profession. and/or compliance with take a professional oath not by the Professional
the continuing before the Board or Regulation Commission.
Period of validity of a Professional Education before any person
Professional license (CPE) and the validity authorized to administer
of the Certificate of oaths, before
The statement of the registration. commencing the
period of validity of the practice of the
professional license The license unless profession.
declares the payment of sooner revoked or
the annual registration suspended for cause, Period of validity of a
fees for three(3) years shall be valid up to the Professional license
and/or compliance with licensee’s birth date in
the Continuing the year indicated and The statement of the
Professional Education shall be renewed period of validity of the
(CPE) and the validity of thereafter but not later professional license
the Certificate of than the twentieth day declares the payment of
registration. of the month following the annual registration
the date of expiration. fees for three(3) years
The license unless sooner
Otherwise penalties and/or compliance with
revoked or suspended for
shall be imposed. the Continuing
cause, shall be valid up to
Professional Education
the licensee’s birthdate in
the year indicated and Membership to (CPE) and the validity of
shall be renewed professional bodies is the Certificate of
thereafter but not later the main concern of the registration.
than the twentieth day of respective accredited
the month following the professional The license unless
date of expiration. organization (APO). sooner revoked or
Otherwise penalties shall Qualification and suspended for cause,
be imposed. requirements for shall be valid up to the
membership are licensee’s birth date in
Membership to
provided by the APO’s. the year indicated and
professional bodies is the
shall be renewed
main concern of the
No firm, company, thereafter but not later
respective accredited
partnership, association than the twentieth day of
professional organization
or corporation may be the month following the
(APO). Qualification and
registered or licensed as date of expiration.
requirements for
such for the practice of Otherwise penalties shall
membership are
mechanical be imposed.
provided for by the
engineering: Provided,
APO’s. Membership to
however, That persons
properly registered and professional bodies is the
licensed as mechanical main concern of the
engineers may form and respective accredited
obtain registration with professional
The practice of geodetic Security and Exchange organization (APO).
engineering is a Commission of a firm, Qualification and
professional service, partnership or requirements for
admission to which shall association using the membership are
be determined upon the term “Mechanical provided for by the
basis of individual and Engineers” and or APO’s.
personal qualifications. “Architect and
Mechanical Engineers” A firm, co-partnership,
No firm, company,
but nobody shall be a company, corporation or
partnership, association
member, partner or association can practice
or corporation may be

151 Domestic Regulation and the Trade in Service


registered or licensed as associate unless he is a metallurgical
such for the practice of duly registered and engineering in the
geodetic engineering; licensed mechanical Philippines, Provided
Provided: engineer, and the that such practice is
members who are carried out by
That this will not be mechanical engineers metallurgical engineer
construed as preventing shall only render work holding valid certificates
any combination of and services proper for of registration issued bu
geodetic engineers from mechanical engineers as the Board and in the
using the term “Geodetic defined in this Act. Regular employ of said
Engineer”; Provided, firm, co-partnership,
further, That the majority Professional firms are company, corporation or
of the members of the regulated by another association. (Sec.25 P.D.
partnership, firm or government agency No. 1536)
association are properly specifically the
registered and licensed Securities and Exchange Professional Firms are
geodetic engineers. Commission (SEC) and regulated by another
not by the Professional government agency
Members of the Regulation Commission. specifically the Securities
partnership, firm or and Exchange
association are The use of international Commission (SEC) and
responsible for their or foreign firm names is not by the Professional
individual acts. (Section regulated by another Regulations
28, RA No.4374) government agency and Commission.
not by the Professional
Professional firms are Regulation Commission. The use of international
regulated by another or foreign firm names
government agency are regulated by another
specifically the Securities government agency and
and Exchange not by the PRC.
Commission (SEC) and
not by the Professional
Regulation Commission.
The use of international
or foreign firm names is
regulated by another
government agency and
not by the Professional
Regulation Commission.

Regulations for Practice He shall not advertise in He should be entitled to


self-laudatory language, a just and fair
Restrictions on or in any other manner compensation for
advertising solicitation derogatory to the services rendered. In the
and marketing dignity of the computation of such
profession. compensation, the
period of time
He shall not be joining a consumed, the
firm, partnership, knowledge, experience,
association, or ability and reputation
corporation registered brought into plan shall
prior to the approval of be taken into
R.A. 4374, one of whose consideration, every
purposes is to engage in factor to be accorded
geodetic engineering such weight as shall be
work without actually or jest and reasonable in
actively practicing each specific case. (Rule
geodetic engineering in 9 Code of Ethics)
or in behalf of said firm,
partnership , association He shall uphold the
or corporation, when principle of appropriate
the same is in actual and adequate
compensation for those

153 Domestic Regulation and the Trade in Service


prosecution of said engaged in engineering
purpose. profession, including
those in the subordinate
• Mechanical capacities in the interest
engineers shall of public service and
not attempt to maintain the standards
compete with of profession.
geodetic
engineers or • He shall not
junior compete, by
engineers for underbidding
employment on through
the basis of reduction in his
professional normal fees on
charges, by the basis of
reducing his charges for
usual rate and work, after
in this manner, having been
attempting to informed of the
underbid him charges
after knowing submitted by
the rate offered another
by another engineer.
geodetic
engineer or •
junior engineer.
• He shall
• He shall not exercise
join a firm , fairness, justice
partnership, and integrity,
association, or when
corporation negotiating
registered prior and/or
to the approval executing
of R.A. 4374, contracts
one of whose between his
purposes is to clients and/or
engage in employer and
geodetic the contractors
engineering in and other
or in behalf of parties shall not
said firm, be financially
partnership, interested in any
Restrictions on fee setting He shall not advertise association, or bid or bids of
in self-laudatory corporation, contractors,
language, or in any when the same suppliers or
other manner is in actual other interested
derogatory to the prosecution of parties in the
dignity of the said purpose. performance of
profession. work which he is
responsible.
He shall not be joining
a firm, partnership,
association, or
corporation registered
prior to the approval
of R.A. 4374, one of
whose purposes is to
• He should be
engage in geodetic
entitled to a just
engineering work
and fair
without actually or
compensation
actively practicing
for services
geodetic engineering
rendered. In the
in or in behalf of said
computation of
firm, partnership,
such
association or

155 Domestic Regulation and the Trade in Service


corporation, when the compensation,
same is in actual the period of
prosecution of said time consumed,
purpose. the knowledge,
experience,
ability and
reputation
brought into
plan shall be
taken into
consideration,
every factor to
be accorded
such weight as
shall be jest and
reasonable in
each specific
case. (Rule 9
Code of Ethics)

• He shall uphold
the principle of
The geodetic engineer appropriate and
is entitled to a just and adequate
fair compensation for compensation
his services. In the for those
computation of such engaged in
compensation., the engineering
period of time profession,
consumed , his including those
knowledge, skill, in the
experience, and subordinate
reputation, and the capacities in the
depreciation of interest of The mining engineer
instruments and public service may publish or
materials used shall be and maintain disseminate professional
considered and the standards of calling cards or advertise
accorded such weight profession. his expertise provided
as is just and that the content and
reasonable. • He shall not information is true and
compete, by not exaggerated.
He shall accept underbidding
compensation, through
financial or otherwise, reduction in his
for his services from normal fees on
his client or employer the basis of
only. charges for
work, after
He shall not compete having been
with another geodetic informed of the
engineers or junior charges
geodetic engineers for submitted by
employment on the another
basis of professional engineer.
charges, by reducing
his usual rate and this • He shall exercise
manner, attempting to fairness, justice
underbid him after and integrity,
knowing the rate when
offered by another negotiating
geodetic engineer or
and/ or
junior geodetic
executing
engineer.
contracts
between his
clients and/or

157 Domestic Regulation and the Trade in Service


employer and
the contractors
and other
parties shall not
be financially
interested in any
bid or bids of
contractors,
suppliers or
other interested
parties in the
performance of He shall uphold the
work which he is principle of appropriate
responsible. and adequate
compensation for those
engaged in engineering
profession, including
those in the subordinate
capabilities in the
interest of public service
and maintain the
standards of profession.

He shall not compete, by


underbidding through
reduction in his normal
fees on the basis of
charges for work, after
having been informed of
the charges submitted by
another engineer.
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De Rosa, D. 1998. Foreign Trade and Investment Policies in Developing Asia. Asian
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Edralin, D. 1999. Continuing Professional and Technical Education in the Philippines.


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http://www.cnms.net/prc/4.htm.

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Domestic Regulation
Continuingand the TradeEducation
Professional in Service 161
161
3
CHAPTER

G
Continuing Professional Education:
Training & Developing Filipino Professionals
Amidst Globalization
Zenon Arthur Siloran Udani, Ph.D.

ABSTRACT

C
ontinuing Professional Education (CPE) in one’s profession is indicative of
a person’s genuine concern for his present and future work. Professional
associations are one of the avenues through which CPE is realized. Updating
members of professional associations on current issues relevant to their field is
unquestionably important. Moreover, professional associations must aim at competence
building and performance enhancement among their members (Nasseh 1996). Likewise,
professional associations should take great interest in molding the characters of
professionals by inculcating their core values and the related positive attitudes among
their members, which should ultimately translate into ethical behavior.

EXECUTIVE SUMMARY

Competitive globalization, accelerated change, and application of technology


solutions are given realities of the new millennium. In the workplace, men and women
need to be continually vigilant about their professional and personal development.
Continuing professional education (CPE) must be a constant concern of the business
enterprise, the individual employee, and professional associations.

Year 2000 saw the scrapping of the CPE credits requirement for the renewal
of professional licenses. This drew mixed reactions. Those who applauded the decision

Continuing Professional Education 163


thought that a load was removed from their backs. They need not waste time and
money attending virtually useless seminars just to earn CPE credits. Moreover, this
also kept them from being a party to corruption, where grease money is traded for the
“seamless” renewal of licenses.

Those who were against the removal of the CPE requirement thought that
professionals would be missing a lot of opportunities for professional development
in the absence of what could drive them towards this objective. Any requirement
stipulated by law induces compliance. Although it is a fact that professional associations
are not the sole source of CPE, these associations can serve a distinct role in prodding
people to aspire for professional and personal excellence.

With or without the CPE requirement, continuing education among


professionals should be an ongoing process. Notwithstanding the limitations of
professional associations, they can still be of effective service to professions.

Updating members of professional associations on current issues in their


field is unquestionably important. This appears to be the dominant thrust of the
professional associations surveyed in this paper. However, CPE in these professional
associations must go beyond this stage. Competence-building and performance-enhancement
must also be encouraged among the members of professional associations (Nasseh
1996). This requires creativity, vision and diligence from the leadership of the
professional associations. Ultimately, it is the personal vision, professional drive, and
sense of urgency of the individual members that would guarantee positive outcomes
and improvements in professional competence and performance.

CPE is a shared concern among all the professional organizations or


associations surveyed in this paper. It is reflected in their vision and mission statements,
and their professional activities. This is a good sign. Serious commitment to CPE or
“CPE in action”, however, varies among these associations. While CPE is a veritable
need of all professionals and all professional associations to compete globally and
address the training and development needs of individuals, its realization and
implementation depends on the following factors and courses of action as gleaned by
the researcher from the professional associations studied:

• Competent and proactive leadership in professional


organizations

• An explicit, operative commitment regarding CPE in an


organization’s mission and goals

164 Education and Globalization


• Assigning CPE as the primary concern of a committee
within the association

• Institutionalizing CPE through concrete programs and


plans of action

• Giving a more definite focus oN CPE which can serve as


the central theme of educational activities of the
association

• Evaluating CPE endeavors of the association annually,


and drawing the best practices and concrete courses of
action

• Publishing a scholarly professional journal which will


encourage research and development among association
members

• Networking and benchmarking with similar international


professional organizations, working towards Mutual
Recognition Agreements between countries

• Upgrading and updating library resources of the


association, earmarking the necessary budget for books,
publications, educational videos and compact discs

• Developing an interactive website that will enhance


communication and exchange of ideas and experiences
among professionals through discussion groups,
electronic bulletin boards, etc. and networking the
association with similar international organizations

• Establishing stronger linkages with colleges, universities


and business organizations in order to develop world-
class curricular and non-curricular courses and programs

In a related study entitled “Continuing Professional and Technical Education


in the Philippines” by Edralin (1999), the author’s recommendations may also be
considered in making CPE serve its intended purpose among professional
organizations. These are:

Continuing Professional Education 165


• Formulation of a unifying HRD (human resource development)
framework
• Review of matrix on continuing education
• Greater access to education, training, and retraining
• Incentives for professionals and technical workers
• Tax incentives to firms
• Needs identification and assessment
• Effective integration of education and employment
• Active tripartite cooperation
• Financing schemes

Moreover, to keep CPE relevant to professions, certain challenges have to be


considered. Tullao (1999, p.32) underlines “the need to refocus CPE programs
towards research, graduate education, inventions and publications.” He adds,
“Professional organizations should have their own journals reviewed by national or
international experts. They should also sponsor professional lectures where their
distinguished members or outside experts are asked to discuss topics of their expertise.
Similar to the quest of higher educational institutions to make research outputs of
their professors published in international journals, professional organizations should
encourage their members to publish in refereed international journals.”

Business enterprises should be encouraged to invest resources in training


and developing their people by giving them the appropriate incentives. In the absence
of external incentives, firms are still duty bound to develop their people for the sake
of the viability and growth of the enterprise.

Colleges and universities can also help in the professional development of


the future work force by aligning their curricula to the needs of companies and
industries. Strategic alliances with professional or industry associations in the
curricular design of courses will enhance the employability of graduates and empower
professionals in the work place.

The researcher also highly recommends a similar study on the CPE activities
of business associations like the Philippine Chamber of Commerce, Inc. (PCCI)
and their regional counterparts. Best practices can be drawn from this research and a
better awareness of CPE in these business associations can spur more investment in
professional development.

Another interesting area for future research in the field of CPE is APEC
collaboration in the training and development of professionals in the financial

166 Education and Globalization


services sector. This matter has grown in relevance and importance amid
globalization.

Ultimately, professionals must realize that they are the best “architects” of
their personal professional development plans. They have to be more proactive and
take the initiative in enhancing their competence and performance.

INTRODUCTION

Amid the continuous formation of the global community, Filipino


professionals must seriously consider their continuing professional education (CPE)
—understood as training and development in their field of expertise and beyond.
This professional drive towards lifelong learning will keep them, at the least, useful
and productive in their present jobs, competitive in their skills, talents, and
knowledge vis-à-vis their foreign counterparts (Tullao 1999), and potentially
employable, should the risk of losing their jobs loom into the picture.

In any case, CPE must be oriented towards genuine people development –


understood as “getting the right values into their hearts, getting the right skills into
their hands, and placing the right ideas in into their minds” (Estanislao 1994). In
this manner, it assumes a holistic approach that encourages both technical and
ethical competence among professionals.

By and large, CPE is an initiative which professionals must assume as a personal


commitment. This should even be clearer with the abolition of the CPE credits
requirements in the renewal of professional licenses. Professionals must improve in
professional competence and personal character to cope with changes in the labor
market and the global workplace. Nowadays when jobs are very demanding, competitive
and scarce, Filipino professionals must take it upon themselves to invest in their
professional training and development. Business organizations, nonetheless, stand
to gain from investing in their people (Udani 1995). “Developing people is a
fundamental managerial task that is even more important and much more challenging
than managing physical resources from one day to the next. Thus, it is always timely
for management to ask itself, ‘What can we do for our people? What more can we do to
help them become better?”(Udani 1995) By doing so, they can enhance the competence
and productivity of their people, empowering their organizations to be competitive in
the global market.

This paper focuses on professional organizations or associations and their


efforts at providing CPE among their members. Specifically, it looks into:

Continuing Professional Education 167


• the state of CPE among selected professions in the
Philippines through the plans, initiatives, and programs
of the corresponding professional associations

• modes of delivery of CPE among these professional


associations that ensure fitness of the beneficiaries amid
the globalization of the workplace

• the strengths and weaknesses of the professional


associations as regards CPE delivery

The study will also employ a training and development paradigm in pursuing
the aforesaid objectives. Lastly, the study will also identify areas of improvement for
CPE in the chosen professional associations.

SIGNIFICANCE OF THE STUDY

The study will allow heads and members of professional associations to


learn from each other in the field of CPE. Good practices that merit replication
and neglected practices that would surface from the descriptive survey should allow
the professional associations to assess their strengths and weaknesses. Knowing these,
professional organizations and external CPE providers will be prodded to review,
reconsider, and evaluate the relevance and effectiveness of their training and
development activities for Filipino professionals. Moreover, these associations can
identify key areas for development and improvement in their programs.

CPE AND LIFELONG LEARNING

Education is a lifelong process. It is not just an isolated event that happened


once in the past but it is a continuing activity in a person’s life. As such it must be
actively pursued as a personal goal and a common good shared by members of an
organization or professional association. By seriously pursuing CPE, professionals
clearly discern what their respective professions demand them to be and what their
clients or employers expect them to do.

Professional organizations and CPE providers must be genuinely concerned


about the people they train and develop. More than just handing information to
people, they must engage in true-to-goodness education which calls for drawing
out the best in people—“educing” what is latent in them, and transforming what is
potential into something actual. Moreover, the training and development policies

168 Education and Globalization


and activities that they pursue must reflect the demands of both the local and global
markets. By doing so, they help Filipino professionals “to meet international
competition” (Tullao 1999).

CPE in this study is understood in its broadest sense. It is any form of education
after one’s bachelor’s degree aimed at increasing and enhancing a person’s level of
competence, both in the technical, non-technical and ethical realm. CPE is part of
the larger field of lifelong learning (LL), which assumes that the human person is a
naturally learning being from childhood to adulthood. Limits to such endeavor are
basically internal factors related to the individual—his values and attitudes, his level
of motivation and personal drive, his aptitude, and physical abilities.

Where educational opportunities and affiliation to a professional association


are absent, CPE and LL are very much in the hands of the individual. The drive to
progress in one’s career, to jack up one’s income and land a better job are among
the motives for seeking and fostering CPE and LL.

It must also be noted that one’s present work can be a veritable field for
growing professionally and personally. Continuous effort to work hard and work well
despite all odds, such as inadequate learning tools, rewards the worker in the long
run with better knowledge and skills, healthy values and attitudes.

Fortunately, there are business organizations that take human resources


development (HRD) seriously. The strategic decision to invest in people is sometimes
induced not just by economic and business considerations but by the chief executive’s
or management’s commitment to developing people.

Over the years, millions of pesos have been invested in training and developing
people. While employee selection and hiring standards are important, continuing
professional education is still needed by people. Gains in productivity, translated to
higher profitability and earnings, are expected outcomes from such investment.

However, the budget for HRD is often the first one to go when cost cutting
is deemed necessary for the viability and survival of the business organization.
Nonetheless, this does not necessarily mean that CPE will come to a halt, as managers
can also be educators at the same time.

CPE melds naturally with lifelong education. There is a clear need though to
understand and appreciate LL better. There is also “the need to rethink and broaden
the notion of lifelong education. More than adapting to changes in work, education
through life should also constitute a continuous forging of one’s own personality—
one’s knowledge and aptitudes, but also the critical faculty and the ability to act. It

Continuing Professional Education 169


should enable people to develop awareness of themselves and their environment
and encourage full participation in work and society”(Delors et al. 1995).

AN INTEGRAL PARADIGM FOR CPE

In featuring the CPE activities of the professional associations considered


in this study, an integral paradigm for CPE (or the CPE GRID – Figure 1) will be
used. The parameters of the paradigm will also serve as the indicators pertinent to
gathering data from the organizations and understanding their CPE activities better.
Figure 1: CPE G

FIGURE 1: CPE GRID

PERFORMANCE-
ENHANCEMENT

COMPETENCE-
BLDG.

UPDATING

TRANSFORMATION INFORMATION FORMATION


(BEHAVIOR) (VALUES) (ATTITUDES)

170 Education and Globalization


The etymology of “education” tells us that it is more than just passing
information from the teacher to the students (Bellah et al. 1992). Aside from
instruction, true education involves drawing out the best in people—“educing” what
is latent in them, and helping them actualize their potentials. Steve Forbes asserts:
“Education enables us not only to gain knowledge but also to develop sound character,
to discover our God-given talents, to lead honorable lives, to become truly good parents,
neighbors and citizens” (Forbes 1999). Thus, the teacher can be compared to a
sculptor who transforms a formless stone into a masterpiece. Such sense of idealism
thrives in the lives of many teachers; teachers who have made it their mission to teach
their students both competence and character. As Forbes aptly puts it, “education is
about more than just developing our intellects. It is about building the architecture
of our souls” (Forbes 1999).

The bases for coming up with the grid are the twin ideas inherent in the
traditional notion of education: to help the young and old to be smart and to be good.
Today’s management gurus would refer to these as competence (being smart) and
character (being good). The vertical bar in Exhibit 1 covers the competence ladder,
while the horizontal bar, the character continuum.

Competence in the context of this research is understood as the technical


knowledge, skills and expertise pertinent to a given profession. Character, on the
other hand, refers to the “human” side of the professional—his personal values,
attitudes and virtues; his people and motivational skills; his leadership and ethical
qualities. Activities and programs gathered from the professional associations, directly
or indirectly related to competence and character building, served as the bases for
classifying the organizations in the CPE grid. Admittedly, it is a lot easier to decipher
whether a seminar, conference or program of a given organization deals with updating,
competence-building, information and formation. The last stages of the competence
and character continuum—performance enhancement and transformation,
respectively—are more difficult to monitor as this would require a close mentoring
and monitoring of individuals for a given period of time. At the risk of appearing
arbitrary, the researcher used his judgment on the nature of the cluster of activities
carried out by a given organization and its explicit strategic intent (through the
organizational vision, mission and value statements) in lodging some professional
associations in the right-uppermost quadrant corresponding to both performance
enhancement and transformation.

An explanation of the CPE grid as applied to professional associations is


further called for. On the competence side, updating involves the purely technical
dimension of a given profession. Professionals are kept informed of the developments
and current events in their field. This may give rise to opportunities for professional

Continuing Professional Education 171


growth, career movements and even business. Updates may be of local or international
scope. Updating “provides practicing professionals with a level of knowledge
comparable to those professionals graduating from professional schools. In other
words, it closes the gap created by changes in technology, science, and skills between
these two generations of professionals”(Nasseh 1996).

Professional updates which trigger build up in knowledge and related skills


move professionals to the next stage of competence-building. As they realize that
what they know and what they can do are no longer sufficient to be productive and
effective professionals, competence-building becomes a more urgent concern. “It calls
not only for updates in professional school basic knowledge and skills, but also for
education derived from pluralistic sources (continuing education for professions)
found useful in assuming competence required by what professionals actually do
for a living”(Nasseh 1996).

At the stage of competence-building, professionals, aided by their


associations, would have identified their key areas of professional development and
growth.

As they habitually work on acquiring more relevant knowledge and applying


the crucial work skills, they gradually move into the stage of performance enhancement
where desired action is generated and sustained for a long period of time. This stage
is anchored on “the act of performing a job efficiently, skillfully, and completely”
(Nasseh 1996). Regular performance appraisals should be able to capture some of
the improvements due to CPE.

Looking at the character dimension of CPE this time (i.e., the horizontal
bar), a number of professional associations espouse a set of core values that address
both the professional and personal development of the members. Integrity, which
is related to ethical, professional behavior, is a value common to many of these
associations.

The information stage basically deals with expounding on the core values of
the organization. This could involve integrating them in the programs, seminars,
workshops, etc. of the professional association. Thus, members become more aware of
the relevance and importance of values in their professional field. Likewise, their
personal value system may also be strengthened and guided in the right direction as
demanded by ethical, professional behavior.

Core values are broad in nature. They are specified and expressed through
particular attitudes. Thus, the stage formation sets in. Formation implies the personal
assimilation and “ownership” of positive work and social values.

172 Education and Globalization


The value of integrity, for instance, could influence one’s attitude towards
ethics in selling or marketing, intellectual property rights, etc. The more palpable a
professional association’s commitment is to its espoused values, the greater interest it
would have in molding the attitudes and behaviors of its members. After all, the
quality of professional behavior bespeaks one’s mettle in a given profession.

The moment core values and attitudes are imbibed in a habitual and stable
manner, the stage of transformation is reached. Transformation, though, is a lifelong
job. Professional associations who reward the best persons or model professionals in
their field make their positive statement for transformation. This means they envision
their members to be both technically competent, and men and women of excellent
character.

From the foregoing discussion, one would be able to infer the implication of
being lodged in one of the nine boxes or combinations in the grid based on the
activities, programs and explicit strategic intents of the professional associations in
the study. The CPE grid conceptualized by the author presents the right, uppermost
box as the ideal for professional associations where performance enhancement
and transformation are carried out explicitly or implicitly.

While professional associations legitimately pursue the vertical axis of


competence, given its three stages or levels, they are reminded and encouraged to
also pursue the path of the horizontal axis of character. The nine boxes within the
grid represent combinations of the different levels of pursuing both competence
and character development in the CPE of professional associations.

The grid serves as a CPE template for professional associations. Analyzing


the strategic intent and activities of the organizations covered in this study, the
author used the grid, lodging them to one of the boxes. The CPE grid can, at least,
serve as a guide in charting the professional and personal development initiatives
of the professional associations.

The integral CPE paradigm or grid used in studying professional education


and development in the professional associations is holistic in nature. It captures
the basic learning content (Delors et al. 1995) such as “knowledge, skills, values
and attitudes.”

Continuing Professional Education 173


The basic components of the paradigm are shown and discussed below:

FIGURE 2

THE CPE TRAINING &


DEVELOPMENT PARADIGM

INFORMATION
(broadening & deepening
Professional APEC’s ideals
of knowledge base/ instilling
Organizations, and agenda for
criteria for judicious
CPE Providers and education &
decision-making)
potential globalization
beneficiaries
UPDATING
(i.e. professionals)
(knowledge)

***********************
FORMATION
(molding positive learning
and work attitudes)

COMPETENCE-BUILDING
(skills)

***********************
TRANSFORMATION
(commitment to lifelong
goals in learning & service)

PERFORMANCE-
ENHANCEMENT
(behavior)

174 Education and Globalization


Stage-Level I: Information/Updating

In the context of this study, information refers broadly to whatever shapes the
value system of the professional. Updating, on the other hand, refers to the profession-
related, technical data and know-how. Updating also presents the emerging trends
and developments including current events in the professional field.

This phase basically involves the transmission and acquisition of knowledge,


skills, and values; defined as the movement or transfer of knowledge from the CPE
teacher to the student, or the discovery of information or knowledge by the student
with the guidance of the teacher. Knowledge here refers to selected and processed
information, sifted through universal principles and stored in the mind of the
teacher. Skills, on the other hand, pertain to the educator’s acquired abilities which
are useful in communicating effectively his knowledge and wisdom to the students.

At this level, the effectiveness and success of the teacher in transmitting his
knowledge and skills to students enable them to acquire sound criteria in gathering
information needed for judicious decisionmaking. Moreover the students are aided
in building their value system.

This stage describes the CPE teacher as technician, i.e., one who merely
imparts knowledge and skills. Although we accept the necessity of teaching knowledge
and skills to prepare students for the workplace, we also recognize the fact that this is
not the sole and essential purpose of education.

The general tendency of many educational institutions to provide students


with a fragmented kind of education, one that leans heavily on the technical side or
academics and has little or no regard for the affective and moral development of
the students, is a paradigm that we want to veer away from. We have observed that
there are currently many higher education institutions which parry from this
integrative goal of education (Bellah et al. 1992). They treat academics and character
development as two separate domains that have nothing to do with each other.
Hence, schools and professional associations have relegated themselves to concerns
of technical and academic achievement, to the sole task of transmitting knowledge
and skills. The philosopher Mortimer Adler (1984) criticized this current trend.
Beyond information and knowledge, students should be equipped with things they
need to face and live up to the challenges of daily life. Bellah et al. echo a similar
belief: “We must recover an enlarged paradigm of knowledge, which recognizes the
value of science but acknowledges that other ways of knowing have equal dignity.
Practical reason, in its classical sense of moral reason, must regain its importance in
our educational life” (Bellah et al. 1992).

Continuing Professional Education 175


Certainly the prevailing phenomenon observed in professional schools is at
variance with the contention that “all educational and formative work” of the schools
aims at no less than influencing “the student’s whole personality” (Brezinka 1994).
Hence, the rationale for proposing two higher levels to the realm of teaching and
learning.

Stage-Level II: Formation/ Competence-Building

Formation/competence building, which follows information/updating in


our paradigm, refers to the strengthening of sound criteria or standards (i.e. based
on universal values or principles), the molding of positive attitudes to guide learners
in making moral choices or decisions, and the translation of technical know-how to
competence. The CPE teacher commits himself to enhancing the moral cognition or
reason of the students and improving their work competencies as well; the educator’s
intent is to have the students adopt or identify with a set of criteria or standards and
attitudes.

At this level, the teacher helps and empowers students to make educated
choices in professional life. To be effective, however, the CPE teacher should teach
the criteria or standards within the context of the professional experience. Otherwise,
they become decontextualized or irrelevant. Decontextualized learning of these
criteria, here, refers to their lack of “relation or connectedness” with the professional
theme being studied. Doyle (1999) asserts that teachers ought to integrate these
standards in a context. To do this, CPE teachers ought to have the keenness to
discover the “natural or uncontrived applications” of these standards to the
professional content being pursued. This is a feasible task because value-laden
standards are intrinsic to academic learning (e.g., coming up with excellent work,
submitting deadlines on time, listening attentively in class, participating in
discussions, cooperating responsibly in groupwork, solving problems skillfully and
creatively, making sound and prudent decisions, etc.). A well disposed student
necessarily gets formed in meeting these standards. The mutual commitment of
the teacher and the students to these academic standards, i.e. the teacher’s consistent
enforcement and the students’ assiduous observance of these standards, is a natural,
yet effective way of positively forming the students’ character. Teachers with this
educational paradigm would certainly not allow themselves to become boringly
pedantic or moralistic in class.

Being open to the formative and “mentor” role of educators in the exercise
of their profession, CPE teachers can transmit moral values and professional
competence by being very good professionals and persons. Character and
competence are both taught and caught. Intellectual honesty and professionalism
are values which students can learn through the example of their mentors. By

176 Education and Globalization


being demanding, and yet gentle with the students, educators can indirectly teach
patience, discipline, order and respect for the laws of nature. Moreover, by training
their students to be responsible in their professional requirements and duties, teachers
are sharing in the task of helping them to become productive and respectable citizens
in civil society.

Stage-Level III: Transformation/Performance Enhancement

The last phase involves transformation/performance enhancement. In this


level, expected and desired behaviors are manifested. This also concerns exercising
influence over a student’s moral reason, affectivity, and professional behaviour by
means of the CPE teacher’s inspiring example and by his commitment to and
consistent demonstration of excellence in teaching. Such influence impels the
student to embody the ideals proposed by the teacher and help him espouse lifelong
commitments to learning and service.

According to Harned (1999), transformation consists of enabling people


to pursue “higher causes.” Both teachers and students must learn how to look beyond
themselves and pursue their work in service of others. Doing so, they multiply the
possibilities of learning and growing professionally and personally. The
transformational process, however, morally obliges the teacher to lead the students
by edifying example. The transformational teacher must exemplify the convictions
he is striving to instill in the students. A true educator is distinguished by his ability
to effect the transformational level of teaching.

All throughout the educational process, information/updating, formation/


competence building and transformation/performance enhancement ought to take
place simultaneously. It is important, however, for the CPE teacher to ensure the
integrity of the information he transmits to the students for only true or genuine
knowledge can be the foundation of effective formational and transformational
teaching. The teacher, should not, however, settle for the mere imparting of veritable
knowledge. Through the knowledge that he imparts, the CPE teacher must set the
impetus to shape the students’ minds according to ethical ideals naturally drawn
from it; such formidable task is further propelled and intensified by the teacher’s
illustrious example so that these ideals do not only stimulate the students’ minds,
but move their hearts and transform their actions as well.

At the stage of transformation/performance enhancement, the learning


professional is not just content with knowledge and decisionmaking skills. On the
basis of the good that he knows, he realizes, discovers the seriousness of life that he
decides to change not just his worldview or outlook in life but his whole life. This

Continuing Professional Education 177


sometimes may include a 180-degree turn which a person takes after a deep realization
about committing himself to a more noble purpose in his professional and personal
life. On the part of the teachers, they see their work not just as a matter of passing
information, no matter how well they may do it. Moreover, they are not content with
just helping the students to do well in their decisions. These teachers take it upon
themselves to help develop good professionals and good persons simultaneously.
While not neglecting the need to be excellent teachers or instructors, they see their
duty as “formers” and “transformers” of men and women.

Professional schools and CPE providers must also look into how they can
positively and fruitfully influence the decisionmaking patterns and lifelong goals
of the students they are committed to train and form well. One can only be ethically
formed, for instance, if he is continually informed by ethical principles and
examples nurtured within and without an educational institution’s culture. And
one can be transformed personally only through constant, lifelong formation.
Thus, the continuity of formation and transformation of a person also depends on
the commitment of the school to development-oriented goals and ideals.

To move from one phase of the paradigm to the next, the key factor is personal
commitment to the ideals embedded in the paradigm. The student, as well as the
CPE teacher, must be a docile, willing and intelligent subject and protagonist in the
educational process. Moving from one stage to the next requires a firm personal
decision guided by an awareness of what is truly good for people. Moreover, the
student needs the encouragement of the teacher. And the CPE teacher, on the other
hand, needs the support of the professional association.

This CPE paradigm or grid has its use in studying the professional associations.
But limited information about the CPE activities provided by these organizations is a
clear delimitation in making an accurate judgment of how these organizations are
performing vis-à-vis the given parameters of indicators. Nonetheless, the paradigm or
grid can serve as a helpful assessment tool for both the professional associations and
individual professionals.

SELECTED PROFESSIONAL ASSOCIATIONS

Selected professional associations or organizations addressing the CPE needs


of “backbone” professions were studied in this research. The selection of the
associations were based on their relevance to the business organization in particular,
and the Philippine economy in general. The professional associations not covered by
this research can be the subject of future studies.

178 Education and Globalization


The following organizations were included in this study:

• the Institute of Corporate Directors;


• the Management Association of the Philippines;
• the Bankers Association of the Philippines;
• the Financial Executives of the Philippines;
• the Philippine Institute of Certified Public Accountants;
• the Personnel Management Association of the Philippines;
• the Philippine Society for Training and Development;
• the Philippine Computer Society;
• the Philippine Medical Association;
• the Philippine Nursing Association; and
• the Institute of Integrated Electrical Engineers.

As previously stated, the main focus of the research was the CPE thrust and
activities of the professional organizations. The information and data used in this
study included:

• the professional association’s vision, mission and values


statement;
• the association’s thrust as regards CPE; and
• the various programs and activities of the association that
promote CPE among members.

The Institute of Corporate Directors (ICD)

Directors of corporate boards play a very important role in the life of


corporations. Their guidance and decisions can either make or break business
organizations. For this matter, they have to be fit for their jobs, preferably men and
women of competence and character.

Launched in September, 1999, the Institute of Corporate Directors (ICD)


“envisions internationally competitive institutions with corporate governance
practices in line with global standards in a free and open economy.” It sees itself as
“an agent of corporate governance reforms in the Philippines and the Asia-Pacific
region through interactive continuing education for CEOs and corporate directors,
proactive advocacy and networking undertaken with the spirit of open regionalism.”

ICD is not exactly a professional association similar to those included in this


study. It can be considered as a provider of professional education for corporate
directors. It is not entirely new as a concept. Similar organizations in the U.S., Canada

Continuing Professional Education 179


and some European countries exist. And ICD, being a fledgling organization, has
benefited from the experience of its counterparts in other countries. In fact, in its
first conference on corporate governance, heads of similar organizations in other
countries came to the Philippines as resource speakers.

The existence of ICD is a blessing to Philippine organizations given the


crucial role of corporate directors in charting and steering the businesses that they
govern. Their competence and integrity have a significant bearing on the viability,
growth and development of their organizations.

While appointed board directors are assumed to be well-qualified


professionals, their credentials and wealth of experience must be enhanced by CPE.
This would enable them to actively participate and effectively contribute in board
meetings. The need for CPE is even more urgent among board members who assume
their position because of familial connections.

Noting the weakness of family businesses as regards corporate boards, Cruz


(2000) observes that “families don’t normally have a functioning Board of Directors.
If the board is composed of only family members, then sessions are held informally
since formal sessions are considered too bothersome and bureaucratic. If there are
non-family members on the board, board meetings are rarely held, because family
issues are considered taboo subjects and not to be discussed in front of non-family
members.”

Cruz adds: “Even the so-called professional boards of family businesses serve
mostly as an advisory board to the owners. They usually have little authority and
seldom vote on major issues. They seldom fulfill the true function of a board, which
is corporate governance.”

“Globalization and trade liberalization are changing the competitive


environment. Family businesses must transform themselves to become globally
competitive. In this environment, the owner-manager cannot continue shouldering
total responsibility for the business. However, sharing responsibility with the board
must also mean sharing authority with the board.”

“In today’s business environment where all business firms must become
globally competitive, the family business must realize that, more and more, it cannot
survive without a real and functioning board of directors.”

Whether an entity is a family business or not, its corporate directors need to


keep themselves professionally fit for their crucial roles. In this regard, ICD helps in
strengthening the credibility and confidence of corporate directors. It goes beyond
informing and updating directors of their roles. They are prodded to set their sights

180 Education and Globalization


on enhancing their performance as corporate governors and made conscious about
caring for their integrity and character.

At its fledgling stage in the Philippines, ICD has the following educational
programs for corporate directors and CEOs:

• Study Sessions on How to Make Corporate Boards More Effective;


• Professional Seminars on selected facets of corporate directorship; and
• Corporate Retreats on strategic management perspectives.

Its advocacy programs consist of:

• Conferences for relevant government agencies;


• Symposia for chambers of commerce and professional organizations; and
• Forum for international fund managers and other investor groups.

In the area of networking, it envisions:

• An ASEAN network of centers for corporate governance;


• An East Asian network of institutes of directors; and
• An Asia Pacific forum for corporate governance reforms.

With the integrity, credibility and prominence of ICD’s trustees and officers,
it can veritably serve as a catalyst in the continuing development and
professionalization of members of corporate boards. Over its last few months of
existence, ICD has attracted some executives to attend its out-of-town educational
workshops. Such activities are self empowering in nature.

In May last year, ICD mounted the “Open Conference on Corporate


Governance and Related Reforms in the Philippines”, attended by more than 300
top executives in the country.

By committing itself to the professionalization of board members, ICD


contributes to the long-term strength and viability of the organizations it serves. As it
is now, ICD targets not just informing corporate directors about developments in
their field but also aims at empowering board directors to be more competent and
performance focused.

ICD has also started empowerment programs among some government


agencies. In a recent open conference on national governance in June 2001 at the
Manila Hotel, the Bangko Sentral ng Pilipinas and the Securities and Exchange
Commission were featured in one of the forums. Steps and measures towards good

Continuing Professional Education 181


governance undertaken by these agencies were presented by representatives of these
two agencies.

Under the leadership of former finance chief Dr. Jesus P. Estanislao, ICD
intends to service more private and public organizations in these next few years.

Given the performance enhancing and transformational short courses and


intensive programs of the ICD, it can be lodged in the right uppermost box of the
CPE Grid. Its commitment to empower board members of organizations and call on
their integrity and character can be gleaned from its thrusts, programs and activities.

The Management Association of the Philippines (MAP)

Strong and hefty organizations bank on a competent and trustworthy top


management. Over the past 50 years, the MAP has served as an association for CEOs,
COOs, and management educators. More than just an association, MAP also stands as
a support group and sounding board for top executives. Presently, MAP has close to
700 members.

Evident in MAP’s objectives is its drive toward professional development.


MAP aims to:

• Foster management excellence;


• Help uplift the standards of management practice in the country;
• Establish and maintain closer relations among senior business
and industrial management executives;
• Promote a broad exchange of latest management information
and practices; and
• Assist educational and other institutions in interpreting the
needs of commerce and industry in so far as the management
career is concerned.

One can glean from these objectives MAP’s intent to update its members
about the emerging trends in their field, build their competence and enhance their
performance as top managers.

Within MAP is the Management Development and Scholarship Committee


which “plans and implements activities relevant to the continuing management education of
members and other senior executives. It develops specific programs to introduce members to new
management theories, concepts, practices and techniques; enhance their management skills;
and expand their managerial knowledge and capabilities.” Committees of this nature are very

182 Education and Globalization


useful for professional organizations. The least they do is to identify “champions” of CPE programs
and activities. They can always be on the look out for the developmental advancement of the
association members.

More concretely, MAP fosters management excellence through the following avenues:

• annual management conference;


• management development forums;
• industry briefings;
• seminars; and
• industrial tours and plant visits.

The activities listed above are patently educational and professional in nature. They
are indicators of the “updating” parameter in the CPE grid.

MAP members are afforded opportunities to listen and learn from the work experiences of
their fellow executives as well as update themselves on current issues and research in the management
development field. “The MAP provides a medium for a broad exchange of management ideas and
experiences with a view toward enhancing the management skills of MAP members and other top
executives, thus contributing to their continuing education.”

Although the activities are predominantly professional, they are also


expected to have a dent on the personal lives of the members. These activities
presumably provide the information and formation dimensions of the CPE grid.
Indeed, a number of management skills also apply to self management.

Ethical leadership and management is perhaps a field where MAP should


invest more resources. While a number of companies have written or implicit codes of
ethics, proper training and formation in this regard should not be taken for granted.
Such developmental programs or activities have a bearing on what management
literature has referred to as transformational leadership.

Unique to MAP is its Management Educators’ Workshops. “Through its


management educators’ workshops, the MAP contributes to the upliftment of management
education in the Philippines and assists educational and other institutions to interpret the
needs of commerce and industry in so far as the management career is concerned.”

In an interview with Mr. Arnold Salvador, MAP’s Executive Director, he says


that MAP per se does not conduct training for its members, except for its
Management Educators’ Workshops. Such workshops aim to teach skills among
participants, while forums and conferences enhance the knowledge of participants.

Continuing Professional Education 183


Participation in workshops would depend on the perceived value added that
can be derived from these by prospective participants. The same is true for fora and
conferences. Moreover, the prestige of speakers also influences the decisions of
executives to participate in management development activities. Top executives are
difficult to detain for a day to attend a seminar. Thus, the design of programs needs to
be well crafted.

To give focus to MAP’s continuing professional education, yearly themes are


adopted and these dictate on the proceedings of the Annual MAP Conference, the
Management Development Fora. The latter usually addresses the issues that are
relevant to the work of the members.

Fora on current issues and global trends also keep the MAP members
informed and prepared to face the globalization of business. In one forum, for
instance, MAP had Dr. Judith Rodin, President of the University of Pennsylvania, to
talk on “Facing the Challenges of Globalization through Management Education.”

“The concept of CPE in MAP is not as explicit as some, in terms of offering


units of continuing education or training programs as such, but they opt for the
more subtle way of educating: not letting the students know that they are learning,
when in fact, they are. And it seems that this method works for them.

“On a last note, all of these proves to show that lifelong learning still appeals
even to busy top executives and the like….If there is one thing man is born with, it
would be safe to say that he is born with the thirst for learning” (Buenaflor & Reyes
2000).

The continuing professional education of business executives naturally


takes place in their respective companies. A posting abroad would afford them
opportunities to deal with peculiar cultural and organizational challenges in the
workplace.

And like any other professional, they have the option of pursuing graduate
studies suitable to both their job and career path.

MAP’s activities and programs are heavy on the competence side. Clearly it
values performance excellence. While its core values and the corresponding
professional attitudes may be explicitly promoted in its activities, more
transformational programs can be included in their management programs. In this
regard, MAP is lodged in the box where performance enhancement and formation
meet.

184 Education and Globalization


The Bankers Association of the Philippines (BAP)

The Bankers Association of the Philippines (BAP) has been around for more
than 50 years. Presently, it is presided by Dr. Placido Mapa, Jr. of Metropolitan Bank
and Trust Company (Metrobank).

Mr. Leonilio Coronel, BAP’s executive director, describes BAP as an association


of commercial banks. It serves as a “think tank” for the member banks, addressing
common concerns and issues faced by the banking industry. Such activities fall under
updating.

To give more focus to its continuing education concerns, BAP linked up with
the Ateneo Graduate School of Business. This led to the formation of the Ateneo-BAP
Institute of Banking, which oversees the CPE needs of banking professionals, given
the inputs from member banks. This alliance is a strategic one as it keeps a higher
education institution’s curriculum aligned with the needs and requirements of the
industry.

The Institute’s vision is “to become Asia’s recognized center for excellence
in continuing education in banking and finance.” This statement is an explicit
commitment of the Institute to help banking professionals gain more competence
and improve their work performance.

This vision is translated to the following mission: “To promote Ateneo


excellence by working with the financial services sector particularly the banks to
develop their human resources through workplace-based, performance-driven
education programs.”

The core values of the Institute are: customer care, custom-fitting and
effectiveness. These values are evidently very work-oriented, suitable to the technical
nature of courses that they offer. Examples of these courses follow:

• Accounting Fundamentals
• Financial Analysis
• Techniques of Financial forecasting
• Credit Management and Administration
• Problem Loan Prevention and Management
• Remedial Management Series
• SME Credit Assessment and Problem Loan Handling
• Treasury Operations
• Asset/Liability Management

Continuing Professional Education 185


The human or values dimension of the programs of the Institute are guided
by the so called Ateneo Tradition of Excellence: “We nurture men and women to
be intellectually competent, technically skilled, politically aware, socially committed,
spiritually sound, wholly integrated.”

To assure globally-competitive programs, the Institute commits itself to a


relevant dynamic curricula: “We continuously refine our courses to address emerging
needs and absorb global and techno trends.”

Besides the training programs offered by Ateneo-BAP, banking professionals


also upgrade their knowledge and skills by enrolling themselves in graduate business
administration, management and finance programs. Most banks also have training
departments that would craft short seminars and long-term programs on the banking
business, enabling employees to perform their present jobs well and prepare some
of them to occupy managerial positions.

While maintaining a pool of research analysts to build up their data bank,


banks still rely on external help of consultants and providers of economic analyses
and indicators. In this regard, the Ateneo-BAP Institute of Banking assists BAP
members in accessing needed information.

The CPE provided by the BAP veers heavily toward competence and
performance enhancement. Courses on demand are designed after the common
needs of member banks.

Besides the training programs offered by BAP, individual banks conduct their
own management training and bank officers professional training programs.
Classroom sessions are complemented by actual work sessions in the different
departments of the bank. These activities aim to build the competence and confidence
of the trainees and enhance their actual performance in their respective work stations.

Among the banks that have been investing resources for internal programs
are Metrobank, BPI, RCBC, Philippine Savings Bank, and the Development Bank
of the Philippines.

While the BAP acknowledges the importance of transmitting corporate values


and fostering ethical practices, the formation and transformation types of programs –
those that are developmental in nature – are carried out internally by the banks
themselves. This is particularly true in banks where an ethical culture is explicitly
valued and deliberately fostered.

BAP’s focused programs and seminars underline its explicit drive towards
competence building and performance enhancement. Backed up by the “Ateneo

186 Education and Globalization


tradition of excellence”, which envisions holistically-developed persons, it merits
being lodged at the upper rightmost box of the CPE Grid where character and excellent
performance meet.

The Financial Executives Institute of the Philippines (FINEX)

The Financial Executives Institute of the Philippines (FINEX) is dedicated


to the enhancement of the skills of the finance executive, enabling him or her to
contribute to the success of the business enterprise. Founded more than 30 years ago,
it now has 747 members, nearing its target of 1,000 members.

FINEX’s mission statement reflects its commitment to CPE and its intent to
play an active role in society: “It is a forum for the development and advancement of its
members, particularly in the field of modern business practice, and in the promotion
of business ethics and social involvement. FINEX and its members will continuously
take a proactive stance in shaping public opinion and key policy on issues related to
their areas of expertise.” Translated into action, FINEX envisions to situate itself in
the performance-enhancement/transformation quadrant of the CPE grid.

Villanueva and Miranda (2000) observe that “in FINEX, one will find the
marriage between the theory of lifelong learning and Continuing Professional
Education. Embodied in its Code of Ethics is the mandate that as financial executives,
members must continuously work upon improving themselves. This principle is
enacted through a provision in the by-laws establishing the Professional Development
Committee and its retention policy that specifically provides that members earn
‘points’ in order to be eligible for renewal.”

Through the years, FINEX has sponsored numerous conferences, seminars,


symposia, round-table discussions and similar educational activities for the
professional and personal development of the financial executive.

In 1976, the FINEX Research and Development Foundation was founded


with the following objectives:

• to create, establish, and provide an institutional entity and/or


medium which will initiate, sponsor, pursue, and/or conduct
programs, projects, and/or studies geared towards research,
development, and improvement in the various fields of financial
and business management, practices, and procedures and other
related sciences, or fields of endeavor; and

Continuing Professional Education 187


• to promote, encourage, cultivate, and assist in the improvement
and amelioration of the social, physical, spiritual, moral, and
intellectual well-being of the poor and destitute, the youth and
elderly through the institution, establishment, and creation of
programs and projects which shall advance and contribute to
greater social awareness in the community and nation in general.

The Foundation has served as an avenue for professionals in the field of


finance to pursue their research interests and hone their research skills. It has also
encouraged researchers to produce world-class outputs.

Villanueva and Miranda (2000) note: “The foundation supports several


endeavors, namely the DBA Fellowship, a Professorial Chair, and the publication of
books such as ‘Handbook on Small and Medium Scale Businesses,’ ‘Financial
Management in the Philippine Setting,’ and ‘Gabay sa Puhunan – Para sa Maliliit
na Industriya.’ To upgrade financial education in the country, the foundation, together
with Philippine Association of Collegiate Schools in Business (PACSB), solicited
from the Central Bank of the Philippines a one million peso grant to conduct a study
in cooperation with the UP College of Business Administration on the curricula for
financial management in leading business schools to determine ways of reducing the
gap between school training and industry requirements. To date, projects such as
improvement of curricula, development of faculty members, encouragement of
research in specific areas of business education, and regional training workshops
have been undertaken.”

FINEX has magnified its CPE endeavors by setting up new organizations in


cooperation with other institutions, namely: the Development Center for Finance
(DCF), the Foundation for Filipino Entrepreneurship, Inc. (FFEI), and the Capital
Markets Development Center, Inc. (CMDCI). “All three organizations,” state
Villanueva and Miranda, “have embraced in their goals the desire to further
knowledge in the field of finance management through projects, programs, and
studies in small business enterprises (FFEI), in the field of finance professional
education (DCF), and capital market skills (CMDCI).”

Villanueva and Miranda (2000) add: “What FINEX has done for the growth
of continuing professional education in the field of finance management should
be imitated by other professional organizations…. At present, there still remains
several professions not covered by the order and unless professional organizations in
that field take it upon themselves to ‘professionalize’ their field by ensuring continued
growth through education, it will take a long time before they can rightfully call
themselves professionals.”

188 Education and Globalization


In the international front, FINEX can strengthen its professional links with
similar associations in the Asia-Pacific Region where a common mission is pursued:
the continuous development of the financial executive. And if beneficial, it can
lobby for the government to enter into a mutual recognition agreement with another
country in the finance profession.

FINEX can also benchmark with the International Association of Financial


Executives Institute based in Switzerland which has 25,000 members in more than
20 countries.

FINEX affords its members ample opportunities to enhance their job


performance as reflected in their programs and activities. It also prides itself with a
strong ethics program opening the doors of personal transformation among the
individual members. For this matter, FINEX qualifies being lodged at the right
uppermost section of the CPE Grid.

The Philippine Institute of Certified Public Accountants (PICPA)

The Philippine Institute for Certified Public Accountants (PICPA) is one of


the largest professional organizations in the country. It has close to 20,000 registered
members, representing the 100,000 accounting professionals in the country. It is also
one of the oldest professional organizations, founded in 1929. To date, it has broadened
its network to include chapters in Bahrain, Brunei, Dubai, Jeddah, Riyadh, Saipan,
Saudi Arabia, and UAE.

It has been cited by the Professional Regulation Commission (PRC) as an


Outstanding Accredited Professional Organization. Although far from perfect, it is
notably one of the more, if not the most organized, professional organization in
the area of professional education and attention to registered members.

The organization’s vision is “to be a strong, dynamic and unified professional


organization of highly-respected, world-class and socially committed Certified Public
Accountants worthy of esteem of the Filipino people.” This vision reflects PICPA’s
commitment to boost the competence and performance of its members, and
transform them into socially-oriented citizens.

PICPA’s mission is “to enhance the integrity of the accountancy profession,


serve the best interest of its members and other stakeholders, and contribute to the
attainment of the country’s national objectives”. It envisions this mission fulfilled
through:

Continuing Professional Education 189


• a responsive organizational structure;
• committed leadership;
• effective professional development programs abreast with state-
of-the-art technology;
• strict implementation of professional ethics;
• promotion of high standards of accounting education; and
• advocacy of and participation in relevant national issue.;

The objectives of the association are:

• To protect and enhance the credibility of the CPA certificate in


the service of the public;
• To maintain high standards in accounting education;
• To instill ideas of professionalism , ethics, and competence among
accountants; and
• To foster unity and harmony amongst its members.

Its core values include integrity, professional excellence, innovation,


discipline, teamwork, social responsibility, and commitment. These values are crucial
to driving the PICPA professionals towards professional and personal excellence.

A number of professional development activities are carried out by PICPA


all year round throughout the country. The move towards continuing professional
development is propelled by the character envisioned for PICPA. “We should be
recognized for the delivery of professional development services to our members
and focus on the enhancement of our profession,” writes 1999 PICPA national
President Danilo Principe (1999).

Among its noteworthy achievements are as follows:

* PICPA members have ably served as the voice of the Philippine


accounting profession in numerous gatherings of international
professional organizations. Foremost among these international
organizations are the International Federation of Accountants (IFAC)
which aims to develop and enhance a coordinated worldwide accountancy
profession functioning under harmonized standards; the International
Auditing Practices Committee (IAPC) of IFAC, which seeks International
Standards Auditing and Related Services; the International Accounting
Standards Committee (IASC) whose objective is to achieve uniformity in
the accounting principles which are used by businesses and other
organizations for financial reporting around the world; the Confederation
of Asian and Pacific Accountants (CAPA) which seeks the development
of a coordinated regional accounting profession with harmonized

190 Education and Globalization


standards; and the ASEAN Federation of Accountants (AFA) which was
organized in 1977 mainly through PICPA’s initiative. It strives to work
together in a spirit of cooperation with the ASEAN region’s varied groups,
whose economic efforts may be complemented by the accountancy profession.

* PICPA hosted many regional and international conferences of


accounting professionals such as the First Far East Conference of
Accountants in 1957; First Forum of Accountants of ASEAN countries
in 1976; First AFA Conference in 1978; 9th CAPA Conference in 1979;
and 6th AFA Conference in 1988. PICPA shall host the AFA Conference
in 1999 and CAPA Conference in 2000.

The foregoing data reflect PICPA’s global competitiveness and its strong
potential in CPE.

In 1987, PICPA formally established its CPE Council “intended to exercise


the functions of the CPE Accreditation Committee.” And in 1997, the “CPE on the
Road” project was launched, bringing PICPA’s CPE programs down to the provincial
chapters nationwide.

PICPA has The Accountants’ Journal, which publishes the research and
technical papers of experts in the field. The Journal has been a spur for accounting
professionals to pursue serious research in the field.

PICPA also has a training center for its CPE activities, and it maintains a
library for the research work and projects of its members.

Listed among its regular educational activities are:

• Monthly chapter meetings with an invited guest talking on


current issues affecting the accounting profession;
• The annual Accountancy Week which features symposia,
workshops, and dialogues;
• The Annual National Convention which includes the
presentation of technical papers by experts; and
• Seminars on accountancy education, accounting principles
auditing, taxation, management services, information
technology.

PICPA also maintains the PICPA Kiosk which is a “stand alone browser”
containing all sorts of information about the professional organization.

Continuing Professional Education 191


To further enhance its global competitiveness and expand its menu of CPE
programs, PICPA can benchmark with more international associations such as the
CPA Associates International (CPAAI), “an association of independent certified and
chartered accounting firms with 103 members worldwide.” Courses offered by the
CPAAI include:

• Accounting & Assurance Seminar;


• Tax Seminar;
• Spring Managing Partners Seminar;
• Fall Practice Management Seminar;
• Financial Planning Seminar;
• Information Technology Seminar;
• Executive Development Workshop for Partners and Senior
Managers; and
• Staff Training Programs.

PICPA is veritably one of the more, if not the most, progressive professional
organizations in the country. Both its strategic intent and programs prepare active
members for better performance on the job and emphasize the need for
transforming oneself into a better person. In this regard, PICPA deserves the right
uppermost slot in the CPE Grid.

The Philippine Computer Society (PCS)

The knowledge society has led to the cyber age where information
technology (IT) professionals play a more prominent role. The information
explosion calls for IT experts who are adept at handling information, its processing
and transmission to end-users.

Next to India, the Philippines has steadily supplied the rest of the world
with qualified IT professionals providing the backbone for many multinational
businesses.

Schools providing IT education have mushroomed over the last 10 to 15


years. And CPE for most IT professionals means enrolling in graduate programs in
IT schools, or short courses in learning centers like STI and AMA, or attending in-
house training or foreign-based programs provided by companies. Occasionally,
some companies would bring in foreigners who are IT experts to conduct seminars
and programs for their employees.

192 Education and Globalization


Founded in 1967, the Philippine Computer Society (PCS) is the organization
for IT professionals in the country with more 700 registered members. In 1978, it
bonded with similar organizations in Asia to form the South East Asia Regional
Computer Confederation (SEARCC). This allowed PCS to compare notes on CPE
with foreign-based organizations. And in 1992, it joined other organizations as a
founding member of the Information Technology Foundation of the Philippines
(ITFP).

To enhance the competence and performance of IT professionals, PCS


envisions itself “to be the IT organization of choice that moves members to pursue
excellence in their individual professions.” It aims to encourage the “sharing of
intellectual resources, the pursuit of dreams and visions, and friendship and
cooperation among IT professionals and practitioners.”

To realize its vision and mission, PCS has adopted the following
organizational objectives:

• Professional Excellence: PCS will be the lead organization that


will uphold the highest level of professional behavior and
conduct.

• Technical Excellence: PCS will actively promote information-


sharing and skills enhancement among its members.

• Personal Excellence: PCS members will spearhead the use of IT


innovations to enhance interpersonal relationships and improve
the quality of life.

• National Stature: PCS membership will be national in scope


and character.

• Contribution to Progress: PCS will support the development of a


globally competitive Philippine IT industry.

In order not to leave out the need to form good and ethical professionals, PCS
identified the following “pillars of professionalism” for its members:

• Quality Standards: PCS members are expected to attain the


highest quality of both process and products of their professional
work.

Continuing Professional Education 193


• Expertise (Technical Knowhow): PCS members are expected to
continuously improve their professional competence/skills.

• Compliance with Laws: PCS members are expected to comply


with all existing laws pertaining to professional work in any
country in which they practice.

• Acceptance to Ethical Obligation: PCS members are expected to


accept their ethical obligations to assess social consequences and
help insure safe and beneficial use of information technology.

PCS conducts its CPE through its Professional Development Programs, in


coordination with institutions such as the Asian Institute of Management (AIM) and
Technical Education & Skills Development Authority (TESDA).

Its Monthly Membership Meetings also serve as an avenue for updating


members with current professional issues and trends. There are also Special Interest
Groups within PCS which are formed on the basis of common professional concerns.
Through its publication Bits & PCS, members are informed about organizational
matters.

PCS also has an IT Council for Professional Standards “responsible of


coordinating with concerned local/foreign government and/or private agencies and
NGOs, regarding the implementation of an IT Certification by the year 2000.”

Lastly, a yearly IT Professionals’ Congress is also held for members. Last


year’s theme was “e-Commerce: The Future is Now!”.

IT educational institutions have also been at the forefront in training world-


class and globally competitive professionals. One institution which is a pioneer in
the field is STI.

PCS programs and activities are bent on the competence, performance


enhancement side. Values may be highlighted in these activities but more can be
done in investing both time and resources in forming and transforming the character
of professionals. In this regard, PCS is lodged in the box where performance
enhancement and information meet.

STI Colleges

STI is the largest computer education organization in the Philippines and


in Asia. Its vision is “to be a leading global educational institution in information

194 Education and Globalization


and communications technologies, that prepares its students to excel and to lead in
their chosen fields of study and to contribute to the development of society.”
Supporting this vision is the mission “to provide quality education in information
and communication technologies, thereby making Filipinos equal to the best in
the world and the Philippines, the Information Technology Center of Asia.”

The STI education network consists of over 1200 schools in the Philippines
and several locations abroad – in California and Virginia in the U.S., Hong Kong
and Taiwan.

Over 80,000 students enroll in STI schools each year. Since STI was
established in 1983, it has provided computer education to half a million Filipinos.

Today, 44 of the STI schools are colleges offering associate and bachelor’s
degrees in computer science, information management, computer engineering,
business administration, office management and computer secretarial.

The rest of the post-secondary STI schools are education and training
centers for computer programming, computer technician course, software
applications, office administration and most recently, e-commerce education.

Nine STI basic education institutions cater to preschool, grade school and
high school education with curricular emphasis on computer technology, science
and mathematics and values formation.

STI Distance Learning (DL) centers abroad serve computer training needs
of overseas Filipino workers. Graduates of DL centers may have their courses credited
in STI Colleges in the Philippines towards earning BS degree.

STI courses are ladderized following an integrated curriculum plan. It


allows students who finish short certificate courses in training centers to earn credits
for baccalaureate degrees in the big colleges.

The New Jersey Institute of Technology or NJIT, the third ranked computer
science university in the United States, granted accreditation of STI’s Associate in
Computer Science Program as equivalent to its own.

Oracle Development Corporation, the world’s leading supplier of software


for information management, has included STI in its academic initiative program
along with UP, Ateneo, La Salle, University of San Carlos and Mindanao State
University. The initiative allows the named schools to integrate Oracle into their
curricula and to benefit from IT education expertise of Oracle.

Continuing Professional Education 195


Electronic Data Systems (EDS), the largest information technology services
organization in the world, tied-up with STI for the inclusion of EDS systems
developments standards in STI’s curriculum in order to produce EDS-compliant
graduates for deployment to EDS projects in different parts of the world.

The University of Cambridge International Examinations Center has


accredited STI for eligibility on the Cambridge awards. This Accreditation allows
STI graduates to earn both the STI and world-class Cambridge certificate.

Microsoft (MS) Press, the educational arm of the largest software


manufacturer in the world has accredited STI’s MS-software package courses.
Graduates of the Microsoft training in STI earn both STI and the Microsoft Press
certificates.

The University of the Philippines Institute of Science and Mathematics


Education Development (UP-ISMED) has entered into a long-term agreement with
STI for support of STI’s basic education courses in science and mathematics. In
return, STI provides UP-ISMED with support for multimedia courseware
development.

STI is also an authorized testing center of the European Computer Driving


License (ECDL). The ECDL is a recognized competence certification in Europe.

The foregoing STI initiatives speak of its commitment to prepare qualified


and highly employable graduates.

One of the unique features of STI is the GHP or Guaranteed Hire Program.
STI guarantees a computer job to its graduates who comply with grade and other
academic requirements upon completion of their courses.

STI’s Circle of Friends is a group of over 700 host companies and


organizations who give hiring preference to STI graduates.

STI is the leading source of entry-level computer professionals to Philippine


business and industry. Thousands of graduates have also joined various computer
installations abroad.

The Personnel Management Association of the Philippines (PMAP)

The Personnel Management Association of the Philippines (PMAP) was


formed in 1956 when a group of close to 40 executives saw the need of addressing
the needs of personnel managers amid the growth of organizations. Since then, it

196 Education and Globalization


has helped upgrade the role of the personnel manager into a strategic partner in
managing people in the business enterprise.

Its vision is to be “the premiere organization committed to the advancement


of excellence in the practice of professional human resource management.” In
pursuit of this vision, PMAP has the following mission:

• Develop the professional skills of human resource management


practitioners.
• Promote the sound practice of human resource management and
established standards of the profession.
• Assist actively institutions improve the human aspect of
management and effectively manage human resources
• Lead in advancement of the human resource management
practice in the community and in the country.

One can see from the foregoing vision and mission that PMAP is almost
synonymous to continuing professional education. While it is concerned about
enhancing the professional skills of the members, it is focused on people
development, which is at the heart of education.

“In a nutshell, PMAP increases productivity among employees, executives


and managers through education. In today’s fast evolving world, a lot of changes
are giving way to a whole new different world. To adapt to these changes, PMAP
has prepared classes, lectures, conferences and meetings which discuss relevant
topics responding to the current situation we are in right now. It is important that
PMAP retains its seal of excellence by tackling on timely issues and innovative
approaches in facing the future” (PMAP 2000).

Presently, PMAP has more than 1,000 members.

Education and training in PMAP is carried out through its HRM


Development Center. This Center takes charge of planning, designing and
implementing HR programs for PMAP members. Various facets of HRM are
addressed by the training and development programs, aimed at empowering
professionals.

“The curricular programs, however, are certificate courses from PMAP


partner schools such as Pamantasan ng Makati [Labor Relations], Jose Rizal College
[Human Resource Development], and UST [Human Resource Planning and
Acquisition]. They allow HRM practitioners to earn an HRM degree and sharpen
their knowledge on the profession” (PMAP, 2000).

Continuing Professional Education 197


Various activities of PMAP address its CPE objectives. The monthly General
Membership Meetings (GMM), aside from its social purposes also serve as a venue for
professional development. A theme relevant to the HRM profession is adopted
and guest speakers are invited to share their knowledge and experiences on the
matter. “There are two objectives. First is to feature timely topics presented by
credible speakers. The second is more long term. It is to establish camaraderie
among the members and enhance the spirit of the association.”

“The lecture series is a package of half-day, monthly forums that features expert
speakers discussing relevant HR topics.”

“Annual conferences are events wherein representatives of different companies


join together and discuss pressing issues and relevant topics.”

A review of these activities would show that the organization is actively


engaged in updating its members, building their competence and improving their
performance. Given its humanistic thrust, some PMAP activities also focus on the
formational and transformational dimensions of the human resource professional.
Year 2000 saw PMAP adapting the theme “Humanizing Business in the New
Economy.”

The organization’s publications are the People Manager, the PMAP Newsletter,
and the LR [Labor Relations] Update. These materials serve the purpose of updating
members about news and trends in the HR field.

PMAP keeps itself updated with global trends in the field through its linkage
with the Asia Pacific Federation of Human Resource Management, which in turn is
a full member of the World Federation of Personnel Management Association
(WFPMA) based in the United Kingdom.

PMAP is another professional organization that is actively engaged in the


well-rounded training and formation of its members. This is reflected in its programs,
activities and strategic intent. The profession itself underscores the need to work at
enhancing the performance of people and developing their character continually.
For this matter, PMAP merits being lodged in the right uppermost box of the CPE
Grid.

The Philippine Society for Training and Development (PSTD)

The Philippine Society for Training and Development (PSTD) is the


professional organization for HR and organization development professionals.

198 Education and Globalization


Founded in 1964, it was formally organized in 1965. Like the PMAP, its main activities
are directly focused on CPE. Its activities include:

• Monthly learning session on current trends, technologies and


practices in the HROD profession;
• Seminars and workshops for trainers;
• Conferences and symposia; and
• Expositions of training technologies and networking.

Presently it has more than 600 members from various sectors. To


broaden its resource network, PSTD has affiliated itself to the American Society
for Training and Development, International Federation of Training and
Development Organization and the Asian Regional Training and Development
Organization.

A number of PSTD members are also members of the PMAP.

The PSTD vision reads:

• A PSTD that is committed to advance the professional


development of its members, so that they can contribute more
effectively to their organization, the profession, and ultimately
the nation.
• A PSTD that serves as the voice of the HROD practitioner in
proactively seeking the excellence in the leadership, people-
focused technologies and customer responsive process.
• A PSTD that leads in the development of HROD profession
with credibility and competence.
• A PSTD that has in its heart the quality of worklife, the
dignity of man and the welfare of the nation.

Its mission is to promote the HROD (Human Resource and Organization


Development) practitioners and the field of human and organization development as a
profession – through the application of training for the growth and profitability of the
organization.

The organization’s objectives are:

• To foster closer relations and promote professional development


among the practitioners of the training and organization
development profession;

Continuing Professional Education 199


• To serve as a forum for the exchange and discussion of
information, ideas and problems related to human resource
and organization development;
• To undertake studies, researches, and programs for the purpose of
seeking more effective means of meeting local training and
development needs;
• To establish, maintain and develop contacts with local
international organizations in matters related to training
and development; and
• To promote understanding of human resource and
organization development as a basic responsibility of
management.

Certain committees exist to ensure CPE among the members. These are:

• Professional Development: tasked with providing services in


the area of development and the professional advancement of
members through learning sessions
• Research: pursuing research for the advancement of the field
of HROD
• Public Seminars: developing and marketing HROD programs
consistent with the objectives of the Society for both the
membership and the interested public

The CPE programs offered by the PSTD are:

• Trainer’s Accreditation Program;


• Basic Training of Trainers;
• Managing and Organizing the HROD Function;
• Training Needs Analysis;
• Designing Effective Curriculum;
• Presentation Skills Workshop/ Facilitating Skills Development;
• Evaluating Training Program Results;
• Energizers and Ice Breakers;
• Organization Development Seminar;
• Experiential Learning Workshop (Structured Learning Exercises [SLEs]);
• Career Planning Workshop; and
• Managing Change.

PSTD, in essence, is a CPE provider to HROD professionals empowering


them to be effective educators of personnel and developers of organizations.

200 Education and Globalization


The variety of training programs and seminars it organizes aims to prepare
professionals work in an environment characterized by “global competition,
accelerated change, and increased use of technology solutions”.

As a professional association, PSTD has not been as proactive like PICPA,


FINEX or PMAP over the last few years. Although by strategic intent, it looks at
updating, upgrading, and enhancing the knowledge, skills, values and attitudes of
the members, not as many corresponding programs and activities were organized.

One would does expect that CPE among the HR professionals has been
basically carried out on the basis of personal initiative. This is possible through on-
the-job training, work experience from a foreign job, pursuing graduate studies or
attending school-based non-curricular seminars here in the country or abroad.

PSTD has to explore more linkages with its foreign counterparts. Although
their list of programs and activities may not radically differ, PSTD can always learn
from the experiences of other foreign associations.

Lastly, PSTD should consider research and publication, and setting up a


website. These programs would encourage the experienced HR trainers to engage
in serious research and document their experiences into best practices. The website,
on the other hand, would serve as the association’s window of communication to
the rest of the world.

As a professional association, PSTD is dominantly concerned with updating


and competence building. Performance enhancement appears to be a goal left to
the charge of the individual members. Its activities are geared more towards the
professional side rather than the personal. For this matter, it is lodged in the box
where competence building and information meet.

The Philippine Medical Association (PMA)

Filipino medical professionals and their respective specialty organizations


are networked through the Philippine Medical Association or PMA. PMA’s vision is
“ to have a fellowship of physicians united in the common goal of acquiring the
highest levels of medical knowledge and skills through continuing education and
research, and to promote the healing ministrations of the physician in the delivery
of health care of patients.”

Continuing Professional Education 201


Its constitution lists the following objectives and missions:

• to bring together and unite the entire medical profession of the


Philippines;
• to extend medical knowledge and advance medical science;
• to elevate the standards of medical education and practice;
• to ensure the enactment of just medical laws;
• to promote fraternal relations among physicians and between
physicians and allied professionals;
• to protect the legitimate rights and prerogatives of the
physicians;
• to serve as an authoritative source of information regarding
health, disease and medical practice; and
• to promote the practice of medicine in the context of Philippine
life and culture.

CPE is institutionalized in the PMA through the existence of the permanent


Commission on Continuing Medical Education (CME). This commission is tasked
to implement the CME code of the PMA.

Yearly, the PMA holds its annual four-day convention which includes
scientific lectures and presentations. The inclusion of scientific sessions oriented
towards the professional development of members is stipulated in PMA’s
constitution. Besides this, there are also the PMA-Unilab Regional Assemblies totaling
to about 14 one-day sessions per year which also include medico-scientific
presentations, lectures on medical ethics, etc.

From the partial list of CME activities in the year 2000, one can see that the
nature of CPE in the various specialty societies are of the updating, and competence-
building types. Actual performance enhancement happens more on the job, as the
medical professional sharpens his skills with the number of consultations and
operations done as the years go by.

The breadth and depth of the CME activities of the various PMA specialty
societies depend on the leadership and cooperation of the members of the
associations. Support to these activities is also drawn from pharmaceutical companies
and business enterprises that sell equipment required by the distinct professions.

Business enterprises catering to the medical professions help in CME


activities through scholarships for post-graduate courses offered locally or abroad,
sponsoring national medical conventions, shouldering the expenses for bringing
in foreign medical experts to conduct lectures or seminars, and providing equipment
for training and development of the organizations.

202 Education and Globalization


A few medical schools in the country could afford to give scholarships to their
faculty of medical practitioners. In most cases, doctors either rely on the support of
pharmaceutical companies or their personal resources.

Doctors should be encouraged to be “diplomates” in their field. This implies


both relevant work experience and passing rigid, world-standard exams given by
the respective specialty boards. The need for expertise in the medical profession is
but logical given the fact that doctors deal with human life. Not to be neglected is
the ethical formation of doctors.

What the specialty organizations should look into is developmental programs


that focus on ethics in the medical and allied professions, and balancing family and
work life. The demanding lifestyle of doctors should not necessarily lead to
neglecting their own family. In short, there is a need to “humanize” these professions
even for the sake of the patients.

PMA is basically an umbrella organization of the specialty organizations in


the medical field. It encourages performance enhancement among members of
the specialty organizations as reflected in their highly focused and specialized
activities. The need for more values, ethics training and transformational programs
is called for given the highly-personalized nature of the medical service. In this regard,
PMA is lodged in the box where performance enhancement and information meet.

The Nursing Profession in the Philippines

Filipino nurses count among the best in the world. They are known for
both competence and character. Presently, they are very much in demand in Europe,
in the U.S., and neighboring countries (Conclara 2001).

“Continuing education in nursing consists of planned learning experiences


beyond a basic nursing educational program. These experiences are designed to
promote the development of knowledge skills and attitudes for the enhancement
of nursing practice, thus improving health care to the public” (Venzon 1992).

Most of what counts as the nurses’ CPE is carried out through in-service
training. “In-service focuses and is designed to re-train people; to improve their
performance and communicative ability and to get them started on the never-ending
continuum of education”(Venzon 1992).

Moreover, they also have the choice of pursuing graduate studies, such as the
program offered by the Institute of Nursing of the University of Asia and the Pacific.
“The trend in universities offering a Master’s program is to prepare the graduate

Continuing Professional Education 203


nurse for increased knowledge and skills in clinical nursing so that their major
specialization may either be psychiatric nursing, maternal-child health nursing, public
health nursing, or medical-surgical nursing. Others may go into the field of nursing
administration or nursing education” (Venzon 1992). There are also short courses
offered by other institutions aimed at enhancing their professional and personal
growth.

Filipino nurses belong to one of the following professional associations


(Venzon 1992):

• The Philippine Nurses Association (PNA);


• The Department of Health National League of Nurses (DHNLN);
• Critical Care Nurses Association of the Philippines;
• Psychiatric Nursing Specialists, Inc.;
• Occupational Health Nurses Association of the Philippines; and
• Operating Room Nurses Association of the Philippines.

The PNA is the oldest society of nurses, founded way back in 1922 when it
was then known as the Filipino Nurses Association. Presently, it publishes The
Philippine Journal of Nursing, a useful source of information and updates for the
nurses’ CPE.

The objectives of the PNA include “(Venzon 1992):

• To attain optimal level of professional standards;


• To work for the welfare of the nurses; and
• To respond to the changing health needs of the Philippine society.

The CPE of nurses belonging to PNA is further enhanced by its departments,


namely, the Department of Nursing Research and the Department of Professional
Advancement. The former is tasked with the following objectives “(Venzon 1992):

• Initiate, motivate and participate in research projects/studies


related to nursing;
• Disseminate findings of research studies among members;
• Receive, keep and preserve records of research projects conducted
by nurses; and
• Give due recognition to nurses who have conducted research
studies in nursing.

The Department of Professional Advancement oversees “the progress and


dynamic development of professional and cultured nurses and develop them to
become effective leaders”(Venzon 1992).
204 Education and Globalization
One can glean from the foregoing information that PNA is dedicated to the
member’s competence building and performance enhancement. Their actual work,
which is a veritable service to others, gives them the opportunity to form good values
and virtues and translate these into their daily behavior. The better hospitals in the
country, like St. Luke’s in Quezon City, employ the best nurses that we have.

The DHNLN, which was incorporated in 1965, serves as the government


sector counterpart of the PNA. Its objectives are similar to the latter’s:

• To help raise the standard of nursing in the Department of


Health;
• To contribute to the solution of problems concerning nurses and
nursing services; and
• To disseminate knowledge in the nursing field through research
and scientific studies; and
• In general, to help advance the science and art of nursing to
meet the needs of a changing society.

Besides professional nursing associations, CPE-related activities of the


alumnae associations of schools of nursing in the country also contribute to the
continuous upgrading of the skills and knowledge, and enhancing of values and
attitudes of Filipino nurses.

The quality of Filipino nurses is further honed as they work abroad. The
demand for them has increased over the last few years. BusinessWorld’s Jacqueline
Conclara reports that “After a decline of 37.58% and 10.39% was recorded in 1996
and 1997, the overseas deployment of nurses began a steady uptick in 1998 up to
last year when it posted a growth of 42.38% from the 1999 figures of 5,413” (Conclara
2001).

The training and formation of nurses, and their actual GOOD performance
in the field, not to mention the demand for Filipino nurses overseas, allow one to
lodge PNA in the box where performance enhancement and formation meet.

The Institute of Integrated Electrical Engineers (IIEE)

Among the existing professional associations for engineers, the IIEE seems
to be the most active in pursuing CPE among its members. The IIEE exists to
ensure the professional growth and competence of electrical engineers (Gonzaga
2000). This addresses the competence-building and performance-enhancement
dimensions of the CPE grid.

Continuing Professional Education 205


Its mission is “to deliver high quality services and products for the purpose of
instilling excellence in the Electrical Practitioner, while enhancing the Electrical
Profession, and making a positive contribution to national development” (Gonzaga
2000).

IIEE’s Code of Ethics includes the following commitments of members


(Gonzaga 2000):

• To maintain and improve our technical competence and to undertake


technological tasks for others only if qualified by education,
training or experience, or after full disclosure of pertinent
limitations; and
• To assist colleagues and co-workers in their professional development
and to support them in following the Code of Ethics.

Founded in 1975, IIEE now has more than 18,000 members attached to
more than 70 chapters.

Besides graduate studies which electrical engineers may pursue for their
continuing professional education, the on-the-job training and work experience
they have further enhances their professional competence. In-house training
programs designed to suit company needs allow the engineers to deepen their field
of specialization. The duration of these programs vary depending on the degree of
difficulty of acquiring a particular skill. Among multinational companies, it is a
common practice to send some of their engineers to train abroad or even assign
some to work in their regional offices which afford the opportunities of better
training and development for the engineers.

Like other professions, electrical engineers foster their own CPE through
the projects they engage in, pursuing graduate studies, and attending short courses
here or abroad.

The IIEE was not in favor of scrapping the CPE requirements for electrical
engineers. Despite this, it continues to encourage its members to pursue the
requirements needed to qualify for the exams for those aspiring to be professional
electrical engineers. This is something which other professional associations for
engineers should learn from.

Lastly, the IIEE should expand its links with similar professional associations
abroad. This should also include networking with Filipino electrical engineers
working abroad who have a lot of experience and expertise to share among their

206 Education and Globalization


colleagues here in the Philippines. For this matter, a highly interactive website with
very useful content should be developed by the IIEE to bridge itself with the
professionals in the field working in various parts of the world.

The thrust and the activities of the IIEE, being the most active
professional organization in the engineering field, merit the slot where
performance enhancement and formation meet.

SITUATING THE ASSOCIATIONS IN THE CPE GRID

If one were to situate the professional associations in the CPE grid, the
following would be the researcher’s subjective placement of these associations based
on the limited data gathered. ICD and PMAP, for instance, seem to be more proactive
in their pursuit of both performance enhancement and transformation among their
members or target market. The crux of the matter is that the CPE paradigm or grid
can serve as an assessment tool for the professional associations, and a guide for
vision and mission setting in the realm of professional and personal development
of people.

CONCLUSIONS AND RECOMMENDATIONS

CPE is a shared concern among the professional organizations or


associations surveyed in this study. This is a good sign. Serious commitment to CPE
or “CPE in action”, however, varies among these associations. While CPE is a veritable
need of all professionals and all professional associations to compete globally and
to complete training and development needs of individuals, its realization and
implementation depends on the following factors and courses of action as seen by
the researcher in the professional associations studied:

• Ensure competent and vibrant leadership in


professional organizations;

• Adopt an explicit, operative statement regarding


CPE in an organization’s mission and goals;

• Institutionalize CPE through concrete plans of


action and programs;

• Make CPE the main concern of an established


committee within the association;

Continuing Professional Education 207


FIGURE 3: CPE

MAP ICD
PERFORMANCE- PCS PICPA BAP
ENHANCEMENT PMA IIEE FINEX
PNA PMAP

COMPETENCE-
BLDG. PSTD

UPDATING

TRANSFORMATION INFORMATION FORMATION


(BEHAVIOR) (VALUES) (ATTITUDES)

208 Education and Globalization


• Give a more definite focus for CPE which can serve
as the central theme of educational activities of the
association;

• Evaluate annually CPE endeavors of the


association;

• Publish a scholarly professional journal which will


encourage research and development among
association members;

• Network and benchmark with similar international


professional organizations, working towards Mutual
Recognition Agreements;

• Upgrade and update library resources of the


association, earmarking the necessary budget to invest
in books, publications and CDs;

• Develop an interactive website that will foster


communication and exchange of ideas and
experiences among professionals through discussion
groups, electronic bulletin boards, etc. and network
the association with similar international organizations;
and

• Establish stronger linkages with colleges and


universities and business organizations.

The following recommendations with regard to “Continuing Professional


and Technical Education in the Philippines” by Edralin (1999) should also be
considered in making CPE serve its intended purpose among professional
organizations:

• Formulation of a unifying HRD (human resource development)


framework;
• Review of matrix on continuing education;
• Greater access to education, training, and retraining;
• Incentives for professionals and technical workers;

Continuing Professional Education 209


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McMillan.

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Buenaflor, Z. and K. Reyes. 2000. CPE and the Management Association of the
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Edralin, D. 1999. Continuing Professional and Technical Education in the
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Gonzaga, A. 2000. IIEE at 25: Towards a Relevant and Responsive Electrical


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212 Education and Globalization


4
CHAPTER

G
International Higher Education:
Models, Conditions & Issues
Allan B. I. Bernardo

ABSTRACT

T
he study was conducted to answer the following questions: (a) What are the
modes of international education in a globalized higher education
environment? (b) How ready are Philippine education institutions for
international education? (c) What is the implication of having international
education activities in the Philippines? Two categories of activities of international
higher education were found: (a) activities stemming from the traditional spirit of
internationalism (international cooperation and appreciation of an international
quality) and (b) variations of open market transnational education (borne out of the
agenda of globalization). It was also noted that even those activities borne out of
internationalism seem to have been transformed recently in ways that converge
with the agenda of globalization. The prospects of internationalizing higher
education in the Philippines were contextualized within the present higher
education system that is experiencing problems related to efficiency, quality, equity
in access, and other external factors. Given this context, it was suggested that
participation in international education programs might be limited to students
from high-income families, and to institutions with strong financial resources that
can be channeled to development programs that will enable them to meet the
requirements of these international activities. There is a strong likelihood that
international programs might lead to the intensification of the existing weaknesses
in Philippine higher education. All things considered, it seems that Philippine
higher education could best benefit from international education activities in terms
of improving the quality of programs and resources. Thus, it is suggested that

International Higher Education 213


quality improvement be a primary consideration in engaging international higher
education. In this regard, more specific issues have to be addressed related to the
focus of quality improvement, the status of local institutions in international
partnerships, and strengthening of local networks. Finally, prospects for improving
the consequences of internationalizing Philippine higher education amidst the
globalizing environment will depend on the prospects for strengthening the quality
and efficiency of Philippine higher education, improving access to quality higher
education, and creating the external environment that will be supportive of
international education activities.

EXECUTIVE SUMMARY

Part 1. The principal aim of the study is to review current perspectives and
information relevant to the following research questions:
1.1 What are the various modes and forms of international education in a
globalized higher education environment?
1.2 How ready are Philippine higher education institutions for
international education?
1.3 What is the implication of having the various modes of international
education in the Philippines? In particular, what is the implication of
the entry of foreign schools in the country in terms of the efficiency
and equity issues related to the delivery of higher education services?
Part 2. The problem of defining international higher education
2.1 Most universities that exist today are creations of nation states; their
characters and functions are largely shaped by the agenda of nation
states.
2.2 Different countries engage the concept of internationalization
differently and for different purposes. Thus, the concept of
internationalization might be best approached with reference to
specific approaches and constructions of internationalization in
domains of policy, process, types of activities, among others.
2.3 Two strong agenda can be discerned in various internationalization
activities: (a) the traditional internationalization, which is consistent
with the spirit of cooperation among nation states of the old world
order, and (b) globalization, which involves the discourses of
integration of economies, competition, mass culture, distributed
knowledge production systems, and high technology.
Part 3. Models of international higher education
3.1 One category of models can be described as those stemming from
the traditional spirit of internationalism or the ethos of international
cooperationism and the appreciation of an international quality.
Another category can be characterized as those variations of open

214 Education and Globalization


market transnational education that were borne out of the agenda of
globalization.
3.2 Specific activities that could be classified as being originally conceived
in the spirit of internationalism include: (a) international student
mobility, (b) faculty exchange and development, (c) research
collaboration, (d) foreign language study, (e) building international
perspectives, and (f) international networks.
3.3 Current practice in these activities featuring internationalism has been
transformed in ways that make them more attuned to the realities
and requirements of globalization.
3.4 Exemplars of open market transnational education include: (a)
distance education, (b) locally supported distance education, (c)
twinning programs, (d) articulation programs, (e) branch campuses,
(f) franchising agreements, and (g) international quality assurance
systems.
Part 4. An overview of Philippine higher education
4.1 Several observations have been made suggesting that Philippine higher
education suffers from several forms of internal and external
inefficiencies. Some of the issues related to efficiency include: (a)
the lack of a rational system for the establishment of public higher
education institutions, (b) poor efficiencies in size, (c) poor student
flows, (d) the lack of articulation between performance in fiscal
planning, and (e) the lack of a rational system that ensures that
program offerings address national development requirements.
4.2 Many indicators of quality higher education point to current
weaknesses in the inputs, processes, and outputs of Philippine higher
education. Some of these indicators relate to: (a) faculty credentials,
(b) instructional/library facilities, (c) the nature of the curriculum,
(d) poor average performance on licensure examinations, and (e)
low proportion of institutions with accreditation.
4.3 Access to quality higher education is brought about by three related
factors: (a) geographic distribution of institutions, (b) the strict
admission requirements, and (c) the high cost of tertiary education.
4.4 There are other factors in the external environment of Philippine
higher education that strongly influence the efficiency, quality, and
equity in access. These factors are: (a) the absence of a credit market
for higher education, (b) the availability of public information on
options and returns of the different higher education institutions,
and (c) weak external governance by the CHED.
Part 5. Prospects, issues, and consequences of internationalizing Philippine higher
education
5.1 International student and staff mobility from the Philippines to other
countries will be limited by the availability of financial resources for

International Higher Education 215


this purpose. The option shall be available for students from high-
income families, and for institutions with large financial endowments
that can be used for this purpose.
5.2 The stronger Philippine institutions can position themselves as a
destination for student and staff mobility if they can develop well-
defined niches in the higher education market based on areas of
strength around which they can develop internationally-or regionally-
competitive programs.
5.3 The ability of institutions to develop effective truly international
programs will be limited by the availability of appropriately trained
faculty members, adequate libraries and research facilities, among
others. Thus, we can expect that it would be the strong institutions
that can develop and maintain such programs.
5.4 Similarly, it is very likely that the elite institutions would be in the
best position to participate in international research collaborations.
The larger majority of institutions do not have the resources to be
attractive partners for collaboration. The CHED can rationalize its
research development program so that there can be a more effective
means of developing the research infrastructure and capabilities in
Philippine universities, so as to enable more international research
collaborations.
5.5 The elite institutions will again be in the best position to participate
and to benefit from international networks, as such networks typically
have certain quality and efficiency requirements that participating
institutions should meet.
5.6 The local market for foreign distance education programs is likely
to be small, as the costs of such programs make this option available
only to a very small segment of the higher education market.
5.7 Although the local market for twinning and articulation programs
may be small because of the high costs of such programs, they may
be quite attractive because of the opportunity to obtain international
credentials. In this regard, the elite institutions might experience
some competition, as the twinning and articulation programs target
the traditional clientele of these elite institutions. The elite
institutions might need to explore avenues for allowing their students
to obtain international credentials to be more competitive in this
area.
5.8 Programs of open market transnational education might not affect
the low-end and middle-level institutions as the latter institutions
cater to students from low- and middle-income families that generally
cannot afford these transnational education programs. Thus, there
will be no changes in the options of their traditional market.

216 Education and Globalization


5.9 Participation in international quality assurance systems is likely to
be limited to the elite institutions, as well, as the resources that are
required for this purpose are largely unavailable for most low-end
and middle-level institutions.
5.10 Generally, participation in international education programs might
be limited to students from high-income families, and to institutions
with strong financial resources that can be channeled to development
programs that will enable them to meet the requirements of these
international activities.
5.11 There is a strong likelihood that international programs might lead
to the intensification of the existing weaknesses in Philippine higher
education (i.e., no improvement in quality of most institutions, lower
external efficiency as institutions address global requirements, and
more inequitable access to quality education).
5.12 However, there is still the possibility that middle-level institutions
may benefit from some of the activities of international education
(e.g., the benchmarking for international standards of quality),
particularly if these initiatives are supported by the appropriate
government agencies.
5.13 All things considered, it seems that Philippine higher education
could best benefit from international education activities in terms
of improving the quality of programs and resources. Thus, it is
suggested that quality improvement be a primary consideration in
engaging international higher education. In this regard more
specific issues have to be addressed related to the focus of quality
improvement, the status of local institutions in international
partnerships, and the strengthening of local networks.
5.14 The prospects for improving the consequences of internationalizing
Philippine higher education amidst the globalizing environment will
depend on the prospects for (a) strengthening the quality and the
efficiency of Philippine higher education, (b) improving access to
quality higher education, and (c) creating the external environment
that will be conducive to and supportive of international education
activities.

INTRODUCTION

The internationalization of higher education institutions is a natural and


inevitable consequence of the continued globalization of economies. For one,
higher education institutions (HEIs) are now being called to produce professionals
for an internationalized economy. Moreover, the opening of national boundaries
to foreign institutions that seek to offer higher educational services is a scenario
that is very likely to become a Philippine reality in the medium term. There is a

International Higher Education 217


need to understand the possible forms of these developments and to assess how the
Philippine higher education system will respond to or be affected by these
developments. Understanding these phenomena should provide important insights
and guides for policy formulation on these issues, as well as for local HEIs as they
seek to redefine their goals and operations in an increasingly global educational
environment.

Objectives of the Study


The principal aim of the study is to review current perspectives and
information relevant to the following research questions:
(1) What are the various modes and forms of international education in a
globalized higher education environment?
(2) How ready are Philippine higher education institutions for
international education?
(3) What is the implication of having the various modes of international
education in the Philippines? In particular, what is the implication of
the entry of foreign schools in the country in terms of the efficiency
and equity issues related to the delivery of higher education services?
The first question simply seeks to determine the range of models of higher
education that are available and to understand the features of each of these models.
The range of models will reflect as much of the models being implemented in
many countries, including those that are not yet being implemented in the
Philippines. In understanding the various models, particular attention will be given
to the experience of member economies of the Asia-Pacific Economic Cooperation
(APEC).
The second question seeks to assess the readiness of Philippine colleges
and universities, and the Philippine higher educational system as a whole, in terms
of the various requirements of international education. Some of the factors that
will be considered in answering this question are the curriculum, student assessment
and evaluation procedures, information management systems, teacher preparation
and credentials, monitoring, accountability, and quality assurance systems, physical
resources, library and other support services, the higher education market, financing
of higher education institutions, the organization of the higher education system,
governance, among others. These various factors could be related to three general
concerns: quality issues, equity and access issues, and efficiency issues.
The third question seeks to explore the issues related to the impact of
specific models of international higher education on the Philippine higher
educational system. Particular focus will be given to the possible consequences of
the entry of foreign institutions on (a) access and equity issues, and (b) the fiscal
efficiency of higher educational institutions. Thus the discussion will focus on,
among other things, how the entry of foreign institutions may or may not impact
on how local institutions manage their operations in ways that might alter their

218 Education and Globalization


fiscal efficiency and the extent to which institutions address the problems of unequal
access to quality higher education in the country.

Organization of the Report


The report will have four main substantive parts, in addition to this
Introduction section, which is Part 1.
Part 2 will be a review and discussion of the broad issues attendant to
understanding international higher education and its consequences. This part will
seek to contextualize the study of international higher education within
contemporary discourses related to globalization and the massification of higher
education.
Part 3 will include a discussion of the various models (i.e., approaches to
and constructions of) international higher education. The various models that will
be considered will be discussed in relation to the broad issues addressed in Part 2.
Particular attention will be given to exemplars of the various models as found in
member economies of the APEC.
Part 4 will provide a brief overview of the conditions of Philippine higher
education. Particular focus will be given to features of the higher educational system
that relate to issues of quality, access, equity, and efficiency.
Part 5 will be a discussion of how the various models of international higher
education (discussed in Part 3) might impact on HEIs in the Philippines, and the
higher educational system as a whole. Again, particular focus will be given to the
possible consequences of internationalization on the issues of efficiency and equity
in access.
The issues shall be summarized with the view of possibly surfacing policy
options, recommendations, and questions for further study and discussion.

INTERNATIONAL HIGHER EDUCATION: THE PROBLEM OF DEFINITION

For some educational scholars, higher education has always been an


international phenomenon. Indeed, many of the well-established universities that
operate today have existed before “nation states” were actually established (Briggs
& Burn 1985). The notion of studia generales of medieval Europe and the wandering
scholars shuttling from the universities in Bologna, Paris, and Oxford all suggest
that universities of old transcended national barriers. Academics in higher education
institutions (HEIs) have always referred to international standards of knowledge
generation, validation, and dissemination, so much so that staff members of HEIs
are more likely to cooperate with institutions from other countries. However, other
education scholars have questioned this notion that HEIs are inherently
international. Scott (1998) considers this notion as being largely mythical because
the HEIs of today cannot actually directly trace their institutional characters to the
medieval universities of Europe. Teichler (1998) and Scott (1998) argue that most

International Higher Education 219


universities that exist today are actually creations of nation states and that character
and functions of these institutions have been largely shaped by the implicit or explicit
agenda of the nation states.
If we assume that most HEIs today are creatures of the nation state, the
question of international education becomes all the more salient as it poses an
alternative to the inherent character of most HEIs. Universities and higher education
systems are now being called on to internationalize. But how should we understand
this concept of internationalizing higher education? Is internationalizing higher
education different from globalizing higher education?
Scott (1999) provides an effective definition of internationalization of higher
education by way of contrasting this concept with the globalization of higher
education. He states:
“Internationalisation reflects a world-order dominated by nation
states. As a result it has been deeply influenced by the retreat from
Empire, and the persistence of neo-colonialism, and by the geo-
politics of Great Power rivalry (notably the Cold War). In the
context of internationalisation the inequalities between rich North
and poor South remain prominent – whether the intention is on
strategic relationships. And higher education is not an exception.
The recruitment of international students, staff exchanges and
partnerships between universities in different countries are all
conditioned to a significant extent by this geo-political context.”

“Globalisation is a very different phenomenon. It reflects not only


the process of global competitiveness – between, for example, the
great ‘market’ blocs of the United States, the European Union and
the Pacific Rim nations. It also involves intensified collaboration
as a global division of labour between low-cost mass manufacture
and services provision (largely, but not exclusively, centred in the
poorer South) and high-value technology and innovation (located
mainly in the rich North, but with intriguing deviations). The result,
therefore, is not a stable world-order of Great Powers and their
allies and client states, however dangerously that stability was
achieved. Instead globalisation implies a radical re-ordering of this
world-order as new regional blocs emerge as old enemies become
new allies (and vice versa); and as national boundaries are rendered
obsolete by the transgressive tendencies of high technology and
mass culture. “ (p. 2)

Scott (1999) goes on to clarify that globalization cannot be simply construed


as a higher form of internationalization. He argues that whereas internationalization

220 Education and Globalization


presupposes the existence of established nation states, globalization is “agnostic about,
or positively hostile to nation states” (p. 3). Moreover, internationalization is mostly
expressed through “the ’high’ worlds of diplomacy and culture,” whereas,
globalization is expressed “in the ‘low’ worlds of mass consumerism and global
capitalism. Most important, Scott argues that internationalization tends to reproduce
and even legitimize hierarchy and hegemony, but globalization can address the
inequalities between countries of the North and the South, and within different
sectors in one nation state.
Within this framework contrasting internationalization from globalization,
others have attempted to recast the definition of internationalization within
globalization. The resulting definitions are quite broad and generic in nature.
Callan (1998) suggests that the current definitions for internationalization will be
forever elusive as different countries and higher educational systems might actually
engage the concept of internationalization in different ways and for different
purposes. Instead, he suggests that we approach the discussion of
internationalization with reference to specific “approaches to and constructions of
internationalization in the domains of policy, process, educational value and social/
occupational change.” In a similar vein, Knight (1997) also proposed four
approaches to understanding internationalization: based on (a) processes, (b) a
typology of activities, (c) the development of competencies, and (d) fostering an
international ethos.
These discussions underscore the importance of defining and
understanding internationalization in its many different forms and functions. As
expected, certain constructions of or approaches to internationalization might be
more consistent with “internationalization” and less with “globalization” as
distinguished by Scott (1999), or vice versa. This means that certain practices
currently referred to as representing international education might be more aligned
with the spirit and agenda of neo-colonial and traditional geo-political dynamics
typical of the old world order. Still other practices might be more attuned to the
emerging agenda of global competitiveness, mass culture, and high technology.
In this paper, we will consider the range of approaches to and constructions
of international higher education. Thus, instead of committing to one definition
of international higher education, the paper will take a catholic approach to
understanding the phenomena. However, the discussions of the various models of
international higher education will take into consideration the degree to which
these models address the contrasting agendas of internationalization and
globalization according to Scott. As the discussions in the next part will show, the
agenda of globalizations seems to be more dominant in today’s discourse compared
to the agenda of internationalization.

International Higher Education 221


MODELS OF INTERNATIONAL HIGHER EDUCATION

Numerous data sources were reviewed to get a sense of the range of


approaches to and constructions of international higher education that are currently
in place in various parts of the world. Hard documents include reviews, evaluation
studies, case studies, critical studies, and theoretical analyses on various models of
higher education, which are published in journals, periodicals, edited volumes and
books on higher education. Much information was also derived from the Internet.
Somewhat not surprisingly, the most current descriptions and discussions on cases,
models, and policies relevant to various forms of international higher education
are more easily accessible in the Internet.
The various models of international higher education will be grouped into
two clusters. The first emphasizes internationalism, and second emphasizes open
market transnational education. The difference between the two clusters can be
construed as somewhat analogous in character to the distinctions drawn by Scott
(1999) between internationalization and globalization. That is, the models classified
within the cluster of internationalism seem to have been conceived and implemented
within similar parameters as Scott’s definition of internationalization. In the same
way, the models classified within the cluster of open market transnational education
seem to have been conceived and implemented within similar parameters as Scott’s
definition of globalization. These two clusters and specific models that fall under
each of these clusters are described and discussed in the following sections.
The different models are classified in one of the two clusters based on an
analysis of the original and/or apparent dominant construction of international
education that can be discerned for each model. However, as the discussions will
indicate, the specific goals, purposes, and features of each model of international
education have been undergoing significant transformations. Thus, although it is
quite useful to make conceptual distinctions between the two clusters, the clustering
should not be viewed as being fixed and rigid. The clustering is a device that is
used to highlight certain similarities and differences among programs or activities
of higher education and the transformations characteristic of these activities. The
clustering also allows for a more integrated discussion of the issues related to the
constructions of and approaches to international education.

Internationalism in Higher Education


One clearly identifiable cluster of approaches to and constructions of higher
education is premised on the value of internationalism in higher education. For
purposes of the current discussion, internationalism is referred to as the principle
of international cooperation for the common good and the appreciation of
international character or quality in education. Internationalism as a principle or
value can be construed as being opposed to parochialism, and to some extent,
nationalism. As applied to discourse on higher education, internationalism refers
to approaches to higher education that seek to enhance the international character

222 Education and Globalization


or quality in students, programs, and institutions. This type of discourse is warmly
embraced in higher education circles as colleges and universities often endeavor to
ensure that knowledge generated and disseminated in these institutions are relevant
and valid not only locally, but also in the global level.
Internationalism is a very good exemplar of internationalization as
characterized by Scott (1999) as it presupposes the stability of nation states and
argues for some attempt to cooperate among these bounded elements without
transgressing the same. The efforts at internationalizing are construed in terms of
related educational and development goals. The educational goals are related to
assumptions of universal knowledge and the need for collaborative international
efforts and perspectives. The development goals are related to the mission of
developed countries to provide assistance and support to less developed countries
in their efforts at improving the capabilities in their higher education institutions.
That is, the programs have the objective of allowing weaker higher education
institutions and systems to develop their capabilities and resources through
cooperative and/or development assistance programs. In doing so, the less
developed institutions and educational systems are enabled to more effectively
participate in the global pursuit of knowledge. As the discussion on the specific
models of internationalism will also show that these activities and programs often
tend to be aligned with the agenda of neo-colonialism and the traditional geo-
political alignments of the old world order, which are closely tied to traditional
discourse on internationalism, international cooperation and development.

International Student Mobility. One of the oldest models of international


education is the model of international student mobility, and it is also the form of
international education that has grown the most in recent years. United Nations
Educational, Scientific and Cultural Organization statistics indicate that in 1980
about 920,000 persons were pursuing higher education studies outside their country
of origin. This number grew to 1.2 million in 1990 and to 1.5 million in 1995
(UNESCO 1995; Sadlak 1998), indicating an increase of about 63 percent in actual
number in 15 years. This development is generally viewed as very positive as the
knowledge is assumed to be universal and the pursuit and advancement of knowledge
is likewise assumed to be strengthened by the collective efforts of individuals from
different national and cultural backgrounds (UNESCO 1995). In this respect,
international student mobility is a very effective activity or means for allowing this
collective pursuit of knowledge. It is not surprising that some countries have adopted
a policy on increasing enrolment of international students. In April 2000, the
president of the United States of America issued a memorandum on the country’s
international education policy that explicitly calls for encouraging students from
other countries to study in the USA and promoting foreign studies by American
students (US State Department 2000). Countries like Australia, Germany, Japan,
and the United Kingdom articulated similar policies much earlier. In these countries,
the population of foreign students increased around 10 percent from 1985 to 1995.

International Higher Education 223


In China, as a result of the new policy statement of the former Ministry of Education in
1980 (Wei & Pan 1997) the number of foreign students grew 27 percent in 10 years
(Sadlak 1998).
However, there are recent patterns in the flow of student mobility that seem
to indicate that international student mobility serves agenda other than the
enhancement of international cooperative efforts to advance knowledge. The
pattern of concern relates to the balance of student flow. According to Sadlak
(1998), more than 75 percent of all foreign study takes place in just ten countries:
the USA (which receives more than 30 percent of all foreign students), France,
Germany, the United Kingdom, Russia, Japan, Australia, Canada, Belgium,
Switzerland, Austria, and Italy. All are countries of the rich North, and all but one
of these countries are members of the Organization for Economic Cooperation
and Development (OECD), a network of developed economies. In contrast, only
one sub-Saharan African country is among the top 50 host countries. Similarly,
only one sub-Saharan African country is among the top 50 countries of origin of
foreign students. These data alone indicate how certain countries maybe
overrepresented in these international student mobility programs, while others are
grossly underrepresented.
The most likely reason for this trend relates to the different financial
capabilities of countries to send their students to study abroad. It therefore seems,
that international student mobility has become largely dependent on the countries’
relative economic strengths. This assertion is supported by data indicating that the
number of students from developed countries who are studying abroad is increasing
faster than the corresponding number from developing countries (UNESCO 1995).
More important, about 97 percent of students from developed countries who study
abroad do so in another developed country. More and more, international student
mobility is flowing from North to North among developed and newly industrializing
countries (UNESCO 1995; Scott 1998). South-to-North mobility is happening less,
accounting for about 6 percent of total (Ordoñez 1997); South-to-South mobility
is even less (1%, Ordoñez, 1997).
Thus, it seems that the more noble scholarly goals of student mobility are
being undermined by market and other economic demands. It used to be that the
flow of student mobility was motivated by academic and development goals couched
within colonial and post-colonial links. Typically, the flow was from colonies or
former colonies to the colonial host (e.g., from Malaysia, Australia and other Asian
and African colonies of the old British Empire to the UK; from the Philippines to
the USA) or from less developed to more developed countries. Currently the flow
is within new economic groupings like the European Union (EU). For example,
even without any actual historical links or financial incentives, the number of EU
students studying in the UK has increased 600 percent in a decade. Australia, which
has never had any historical or political links with its East Asian and South East
Asian neighbors has extensive enrollment from these countries, which reflects the
emergence of a new regional market grouping (Scott 1998). According to Scott

224 Education and Globalization


(1998), international mobility in today’s global environment is largely determined by
economic and open market exigencies. The drop in student mobility from Southeast
Asian countries in the late 1990’s was clearly due to economic instability (i.e., currency
fluctuations) in countries of the region (Bruch and Barty 1998). These types of
development underscore the dependence of student mobility on highly volatile market
forces.
In summary, one of the oldest examples of internationalism in higher
education has grown stronger in the past decades. However, international student
mobility is currently driven and shaped by market considerations, rather than goals
related to ideals of having international cooperation or an international character
in scholarship.

Faculty Exchange and Development. A model of international education that


is related to student mobility is academic staff mobility, which often takes the form
of faculty exchanges and faculty development programs. This is linked to student
mobility because in some cases the students who study in other countries are actually
faculty members of local colleges and universities who get advanced training in
foreign institutions.
As it is with international student mobility, the flow of assistance in faculty
exchange and development programs were traditionally framed within geo-political
alliances that were colonial and neo-colonial in nature. In the Philippines, for
example, the longest standing faculty exchange and development programs are
those with the USA. These include the Colombo Scholarship Plan (from the 1950s
and 1960s), the East-West Center Scholarships, and the Fulbright Scholarships (Caoili
and Valenzuela 2000). More recently, however, countries that do not have a strong
historical and political links with the Philippines have initiated faculty exchange
and development programs. The onus for such programs seems to be related to
emerging trade and other economic relations. For example, there have been strong
faculty development programs sponsored by the governments of Canada (through
the Canadian International Development Agency and the International
Development Research Centre Program), Australia (Australian International
Development Agency Programs), France (Alliance Francaise), Japan (Monbusho
Scholarhips, Japan International Cooperation Programs, and the Oversearch
Economic Cooperation Fund), among others (Caoili & Valenzuela 2000).
The Fullbright Fellowships Program is perhaps the largest and most
successful program promoting faculty exchange and cooperation at present. The
Fulbright Program was established in 1946, at the end of World War II, to increase
mutual understanding between the people of the United States and other countries,
through the exchange of persons, knowledge, and skills (Department of State
Fulbright Program 2001). Regarding faculty exchange and development, Fullbright
grants are awarded to citizens of participating countries, primarily for university
teaching, advanced research, and graduate study. Specific examples of these grants
include the Fulbright American Scholars Program (which sends around 800

International Higher Education 225


American faculty members to other countries annually), and the Fulbright Visiting
Scholars Program (wherein about 800 non-American faculty members come to the
US to lecture or conduct research in US colleges and universities annually).
According to the Fullbright website: “Since the program’s inception, more than
85,000 U.S. Fulbrighters have traveled abroad to lecture or conduct research in a
wide variety of academic and professional fields ranging from journalism and urban
planning to music, philosophy and zoology. More than 144,000 foreign citizens
have come to the United States under Fulbright auspices.” According to Burn (1988),
the Fulbright program is quite successful in fostering experiences and developing
attitudes that promote a commitment internationalizing education, a global and
multicultural worldview, and in supporting cross-cultural contact. She further argues
that these cross-cultural experiences of faculty members are very critical in sustaining
efforts of higher education institutions to internationalize their curriculum,
instruction, and other organizational programs.

Research Collaboration. A more specific form of faculty exchange and


development focuses on research collaboration. Some faculty exchange programs
(e.g., the Fulbright programs, the Monbusho programs, etc.) have specific
components directed at promoting research collaboration among faculty and
scholars from different countries. Traditionally, research and knowledge production
was a self-contained activity within universities. In the past, the exigencies of research
hardly required for collaboration among scholars from different countries (except
perhaps in topics that involve area studies or international studies). Academic
scholars could pursue active research programs while remaining within the confines
of their own universities, libraries, laboratories, and research sites. All this has been
changing in the past couple of decades, and the changes can be attributed to the
change in the nature of knowledge production required in a globalized world
economy.
Knowledge plays a much more important role in today’s globalized market
economy. According to Salmi (2000), competitive advantage is best gained from
the use of knowledge, particulary in one’s “ability to acquire and apply technical
and socio-economic knowledge.” He further states that, “the proportion of goods
with medium-high and high level technology content in international trade has
gone from 33 percent in 1976 to 54 percent in 1996. Today, economic growth is
more of a process of knowledge accumulation than of capital accumulation.” We
can cite very specific cases in point. According to Nishikawa (1997) for example,
the knowledge service area represented 25 percent of the GDP of Japan in 1985,
but in the year 2000 it represented 32 percent of GDP. Clearly, the demand for new
and more sophisticated forms of knowledge is growing. Another important
consequence of this strong demand is the fact that HEIs now have many competitors
in the knowledge production process. Thus we have an expansion on the demand
side of knowledge production (i.e., for more sophisticated knowledge) and a similar
expansion on the supply side (i.e., more individuals with research and knowledge

226 Education and Globalization


production capabilities). According to Gibbons (1998a) the situation creates a new
distributed knowledge production system, wherein a large number of highly varied
institutions in different locations produce very specific but diverse types of knowledge.
Within this distributed knowledge production system, HEIs no longer enjoy
privileged status. The new environment requires the HEIs to rethink and recast
their knowledge production systems in ways that will allow them to compete and
thrive within this distribution knowledge production system (Nishikawa 1997;
Gibbons 1998b). Collaboration among local HEIs, and even among HEIs in different
countries, is one of the most strategic responses to these new demands. It seems
that the collaboration needs to go beyond the short-term and self-contained
exchange research fellowships presently supported in programs like the Fullbright
and the Monbusho. Instead, the collaborations ought to be strategically conceived,
sustained, and organized with effective communication systems, so that the partner
institutions can effectively compete with other participants in the knowledge
production process (Gibbons 1998b).
A particularly successful example of such a collaboration program is the
Acciones Integradas, a cooperative program between the UK and Spain (Elliot 1998).
The program was initiated in 1983 and is financed by each party contributing over
163 million dollars annually to prime research linkages between institutions that
account for 80 percent of all British and Spanish universities. According to Elliot
(1998), a recent survey showed that the various research collaborations in the
program have gone on to win at least 77 million dollars more in additional research
grants, and have produced over 1000 publications in refereed journals, 35 books,
61 conferences, and six patents.

Internationalizing Curricula: Foreign Language Study. Another model of the


earliest expressions of internationalism in higher education is the development of
curricula that have an international component or some international character.
The simplest expression of this approach is the inclusion of foreign language
requirements in the general education curricula of undergraduate programs.
Traditionally, a liberal arts education required the development of proficiency in at
least one foreign language, consistent with the vision of internationalism in higher
education. As higher education requirements became more pragmatic and oriented
towards professional skills development, such foreign language requirements
became more and more scarce. In the Philippines, all college students used to be
required 24 units of Spanish until the late 1970s. Now, very few college degree
programs require any courses in foreign languages other than English.
However, there are recent trends towards bringing back such requirements
in higher education programs. Moreover, there are moves to even strengthen the
foreign language base in the basic education programs. The trend seems to be
strongly motivated by economic considerations. A global economy requires that
the participants in market and related activities have some level of proficiency in

International Higher Education 227


foreign languages, specifically English and the languages of the other leading
economies and/or markets. Being able to speak a foreign language provides
individuals with a competitive advantage in a globalized world economy (Cooper
1988). Thus, many countries are systematically incorporating foreign language
requirements in their basic and higher education curricula.
In the United States, several institutions have started implementing new
foreign language requirements using alternative frameworks, in particular, using a
total immersion approach for foreign language learning (Reardon 1997). In St.
Olaf College, students with intermediate proficiency in a second language are
allowed to study humanities, behavioral sciences, natural sciences, and mathematics
in a second language by using foreign language texts. The medium of instruction
in the classes is still English, but students are also grouped into small (similar
language) clusters wherein they can discuss course materials in the various foreign
languages. Syracuse University offers one-unit foreign language modules that are
couples to three-unit disciplinal courses that are taught in English. The students
become acquainted with the disciplinal vocabulary and scholarship in a foreign
language in addition to the typical disciplinal knowledge they would learn from the
traditional course. The University of Rhode Island has an expansive program that
combines the study of German and Engineering. During their fourth year of study
in Engineering, the students participate in a six-month internship in an engineering
firm or research institute in Germany and other German-speaking countries in
Europe. In the process they develop oral skills and disciplinal vocabulary in German.
Students are awarded a B.S. in Engineering and a B.A. in German after they complete
the five-year program.
Consistent with developments in the field of student mobility, foreign
language study in higher education seems to be transforming in nature and scope.
It used to be that the rationale for foreign study was rooted in the spirit of
internationalism and couched within colonial or neo-colonial arrangements (e.g.,
Spanish for Filipinos, French for Vietnamese, etc.). Now the study of foreign
languages are framed within more varied frameworks that are clearly designed to
address the needs of participating and competing in a globalized world economy.

Internationalizing Curricula: Building International Perspectives. Foreign


language study was the simplest expression of internationalizing in the higher
education curricula. A more expanded expression can be found in attempts to
inject a stronger international quality or character in the curricula. Such attempts
were aimed at allowing students to study phenomena and understand their realities
using a broader, more international perspective, or at least from a perspective other
than their own national or cultural perspective (Dale 1988). This curricular
approach attempts to make students realize that their ways of understanding their
experiences are often closely tied to assumptions, beliefs, and practices in their
country and culture that are shaped by the historical, cultural, economic, and
political life of their country – and that people from other countries and cultures

228 Education and Globalization


that have different histories, cultures, economies and political systems will most likely
not understand the same experiences in the same way. In other words, these curricular
programs emphasize the historicity and cultural-specificity in the various ways of
knowing, and thus aim to rid students of what might be very parochial ways of
understanding the world (Reardon 1997).
The most common expression of this curricular design takes the form of
academic programs in international studies and international relations. In recent
decades there has been a clear increase in the volume and scope of such programs.
In South Korea for example, the Ministry of Education invested 100 billion won
over five years to support nine universities in Seoul to open Graduate Schools of
International Studies (Koo 1997). Programs in international studies emphasize
language, history, literature, and the high culture of other countries (e.g., China
studies, Japan studies) or regional groupings (e.g., East European studies, South
American studies, East Asian studies). Programs in international relations tend to
have a politico-economic focus. Unfortunately, such programs are being criticized
for often failing to be true to the tenets of historicity and cultural-specificity.
According to Reardon (1997) for example, most programs in international studies
and international relations draw from scholarship of the West and of developed
nations investigating other cultures and explaining other cultures using the
categories and constructs of Western scholarship. In Reardon’s words, “the
explanatory structures were derived from the study of Western Culture and
superimposed on other cultures.”

Such criticisms of Western or Eurocentric scholarship, coupled with criticisms


about the use of the Western disciplinal categories in scholarship (e.g., Miyoshi 1991;
Wallerstein 1991; Said, 1993; Perkin 1996) have prompted many institutions to start
inquiring into alternative frameworks and approaches to international studies, and
developing genuine international perspectives in the higher education curriculum.
Most of the initiatives in this new approach incorporate a strong interdisciplinary
and/or multidisciplinary slant. Moreover, these initiatives have gone beyond the
confines of international studies and have instead focused on reorganizing the general
education curricula around international themes. Reardon (1997) describes the
initiatives of two American institutions. St. Lawrence University has introduced a
series of two courses in the required core curriculum: “Conceiving the World” and
“Cultural Encounters.” The first course involves comparing a Western culture with
several other cultures with respect to several specific topics. The second course is
organized historically and emphasize topics related to cultural change and
development as a consequence of cross or intercultural contact. Portland State
University has abandoned the traditional distribution model for the general education
curriculum that requires students to take the mandatory number of courses in the
social sciences, humanities and natural sciences. Instead their general education
curriculum consists of courses such as “Crossing Borders,” “Individual Rights and the
Common Good,” and “Nature and Environment” that are designed by faculty members

International Higher Education 229


from different disciplines and cultures and that integrate in a comprehensive way the
non-Western ways of understanding these phenomena (i.e., not as marginalized
enhancements). Both the St. Lawrence University and the Portland State University
general education curricula have a study-abroad component.
As with the developments related to international student mobility and foreign
language studies, the developments related to international studies have also shifted
from an agenda of traditional internationalism. The shift involves moving away from
the form of internationalism that is actually an imposition of a dominant culture’s
perspective in understanding other countries and cultures. Although the earlier
discussions stem from rather abstract theoretical criticisms regarding the nature of
knowledge and understanding, the shift in perspective is actually more strongly driven
by changing demands in the global workplace (Christensen 1988; DiBaggio 1988).
According to Goodman (1996) for example, corporate executives and government
officials now prefer to employ individuals that have the skills to act flexibly and
strategically from one project and region of the world to another. Such individuals
need to have a perspective of the world that more consistently reflects the diversity of
worldviews in various parts of the globe. Thus, the demands of a globalizing world
economy still strongly shape the nature of the transformations in the internationalizing
curricula.

International Networks. Another traditional expression of internationalism


in higher education is the formation of international networks of higher education
institutions and/or programs. In some ways, such networks are the most public
and visible expressions of internationalism – colleges and universities from different
countries and regions of the world coming together a la United Nations in
cooperation to address the noble vision of universal scholarship. Within such
networks, the goals and implementation of most of the models discussed earlier are
greatly facilitated. The oldest networks of HEIs have been linked to geo-political
alliances of the world order. A good example of such is the linkage among
Commonwealth countries that have programs administered by the UK (through
agencies like the British Council & the Overseas Development Administration) and
that include student and faculty mobility, faculty development and collaboration,
institutional and program development, area and English language studies, among
others (Elliot 1998; Gibbons 1998a).
Other networks of long-standing are actually lose alliances with very modest
agenda related to cooperation and development. One example is the Association
of Southeast Asian Institutions of Higher Learning (ASAIHL), which was founded
in 1956 by eight universities. It now has 152 member institutions from 14 countries,
including some from outside the Southeast Asian region (Hong Kong, Japan,
Canada, USA, Australia, New Zealand, and Sweden). The purpose of the
ASAIHL is

230 Education and Globalization


“to assist member institutions to strengthen themselves through
mutual self help and to achieve international distinction in teaching,
research, and public service… Specifically, the Association exists to
foster the development of the institutions themselves, the cultivation
of regional identity and interdependence and liaison with other
regional and international organizations concerned with research
and teaching.” It serves as clearing house of information; provides
regular opportunities.” (ASAIHL 2000)

The programs of the ASAIHL include a wide range of activities related to


the different models of international education discussed earlier. These include
serving as a clearinghouse of information for use of all member institutions,
sponsoring an annual seminar where member institutions discuss academic and
institutional development topics, facilitating faculty and student exchange, awarding
fellowships and scholarships, publishing handbooks, reports, bulletins, newsletters,
among others. The network provides opportunities for cooperative development
efforts but these efforts are highly nonintrusive and they are not programs that aim
to more aggressively transform higher educational systems relating to curriculum,
administration, organization, financing, among others. As such, the impact of such
networks seems to be rather limited.
More recently, new forms of networks have been formed. Such networks
have a different agenda from the traditional networks formed in the spirit of
internationalism. The new networks have a more long-term agenda of transforming
the structures of higher education in ways that will more effectively address the
demands of a globalized world economy. For example, the international programs
of the European Union have effectively overwhelmed the network of Commonwealth
nations. The international programs of ERASMUS and SOCRATES have been very
successful in facilitating a more large-scale exchange among students and faculty.
The long-term goal of ERASMUS and SOCRATES is to reduce the social, economic,
and cultural disparities among the countries of the EU. The policies that have
been set up to facilitate the cooperation programs have also had the consequence
of challenging the traditional curricular and pedagogical approaches in participating
countries, and even the bureaucratic and policy constraints that are in place in
different countries. These changes have the net effect of transforming and
revitalizing the diverse higher educational systems in ways that make these systems
and the institutions within more capable of responding to the challenges of regional
cooperation and competition in Europe (Teichler 1997; 1998).
The ERASMUS and SOCRATES are products of initiatives of a supra-
government organization, the EU. Other recent forms of international networking
are initiatives of higher education institutions acting on their own (i.e., not under
the director of government or other more expansive organizations). A good example
is the Universitas 21, which is actually a company (incorporated in the UK) with a
network of 18 highly reputable universities in 10 countries from all over the world

International Higher Education 231


(Universitas 21 2001). The purposes and programs of the network are summarized as
follows:
“This network provides a framework for member universities to
pursue agendas that would be beyond their individual capabilities,
capitalising on the established reputation and operational reach
of each member. The Company’s core business is provision of a
pre-eminent brand for educational services supported by a strong
quality assurance framework. It offers experience and expertise
across a range of vital educational functions, a proven quality
assurance capability and high brand value. Universitas 21 has been
established for the purposes of:

“Developing international curricula for graduates educated and


trained to operate in a global professional workforce, with
credentials that are internationally portable and accredited across
a range of professional jurisdictions;

“Providing a quality assurance structure that operates globally to


offer internationally valid processes for the enrolment, instruction,
assessment and certification of students, and an internationally
recognised brand identifiable with a global network of high quality
universities;

“Providing partnership opportunities for major new providers,


including corporate universities, wishing to access a fast growing
international market for higher education and advanced training;

“Bringing to such partnerships international recognition and


legitimacy, premium higher educational branding, a demonstrable
quality assurance capability, and a proven capacity for producing
and delivering quality higher education and training programs.
(Universitas 21 2001)

Although the general agenda and purposes of the network are very clearly
defined, the specific programs of the network are still being studied and carefully
planned. The care taken in the program development processes stems from the
need to reckon with the current diversity in the systems and cultures of the different
member institutions. In spite of this, the rhetoric of the Universitas 21 expresses a
clear intention to recast the educational missions and structures of the member
institutions in ways that will strategically address the needs of an emerging globalized
environment (c.f., Clark 2000; Gibbons, 1998b, Teichler, 1999). The agenda and
purposes are clearly much more aggressive and progressive compared to the agenda
and purposes of the ASAIHL, for example. In particular, the discourse of Universitas

232 Education and Globalization


21 clearly incorporates the values and constructs of corporatizing HEIs and open-
market education, whereas the discourse of ASAIHL is still couched in terms of the
values and constructs of internationalism and respect for existing structures within
nation states.
There are attempts to form a more progressive form of higher education
network in the Asia-Pacific Region. In 1997, the Asia-Pacific Conference on the
Formation of a Regional Network for Higher Education and Research: Policies,
Strategies and Administration (1997) was held at Waseda University in Japan.
Participants from various countries in the Asia-Pacific Region shared their
experiences in their attempt to internationalize higher education in their respective
countries. Scholars from other parts of the world also shared their own experiences
in forming regional higher education networks. Although the participants clearly
see the rich opportunities that forming a network would afford especially in
rationalizing and facilitating the various approaches to internationalizing higher
education, they were also very much aware of the obstacles and issues related to the
endeavor. Most of the concerns relate to wide diversity among the higher educational
systems covered in the region, the existing inequities among these systems, and the
heavy dependence of such an endeavor on equal access to financial resources among
the various systems (c.f., Mooney 1997; Ordoñez 1997; Teichler 1997). It is not
surprising that these concerns mirror the issues that are typically raised in relation
to globalization and free-market systems.
In summary, once again we see how globalization is transforming a
traditional expression of internationalism in higher education. The new
international networks that are being formed have a much more focused and
aggressive agenda that seek to transform HEIs and systems in ways that will hopefully
make these more responsive to the needs of an emerging global environment.

Open Market Transnational Education


The second cluster of international higher education models can be
differentiated from the first cluster in terms of the general goals or purposes for
embarking on these “internationalization” activities. That is, the models and activities
in the second cluster are specifically designed to capitalize on the opportunities
afforded by the changing demands of a globalized world economy. The institutions
that offer these types of international education programs are not primarily
concerned with the spirit of international cooperation among different countries.
Indeed, the underlying assumption is that countries and national boundaries are
no longer real boundaries that ought to constrain the delivery of educational services.
Moreover, the pressures and the requirements of globalization will need to be
addressed by recasting the very nature of higher education and HEIs – their
organization, character, and functions (see e.g., UNESCO 1995; Gibbons 1998b;
Teichler 1999; Salmi 2000). Not all institutions of higher education can respond to
these pressures and demands with equal ease (Bernardo 2000); thus, it is not
surprising that most of the programs and activities described in this section are

International Higher Education 233


fairly “young” institutions that are not yet quite as entrenched with the traditional
rules and systems of higher education.
Several assumptions seem to underlie the programs of international higher
education in this cluster. First among them would be the idea that national boundaries
need to be transgressed to ensure that HEIs can maximally service the target clientele.
There is also the assumption that higher education institutions will need to service a
more diverse profile of students and that these students require a different set of
skills and knowledge in order to be competitive in the global environment. These
students are in different circumstances in life – some have already been working for
several years, some are working while studying, and some might even be studying only
for specific job-related purposes. These students will need to be reached by
considering a wider variety of modes of delivery, some using advanced technology,
some requiring a greater extent of geographic mobility, and often there will be a mix
of delivery modes in one program. At the same time, there is recognition of the need
that some new but common form of quality control to govern these new structures and
systems. Thus, we see a variety of types of program offerings that differ in organization
and in character from the traditional programs offered by typical HEIs. The six
models of international higher education in this cluster follow the same classification
defined by McBurnie and Pollock (1998).

Distance Education. “Traditional” or “stand-alone” distance education are


defined as programs where students pursue independent study within a provider
institution’s nonresidential programs. This very broad definition includes both
full-time and part-time study and a wide variety of delivery systems in the distance
mode (e.g., printed modules, correspondence courses, radio, television and other
mass broadcast media, internet bulletin boards, blackboards, etc.).
Distance education programs themselves are not necessarily “international.”
However, this form of education delivery is quite extensively utilized in providing
higher education services across countries. Course materials may be transmitted
from the provider institution to the student through post mail, the Internet, satellite,
or other means. Student assignments and other requirements are sent back to the
institutions for evaluation and feedback through similar means. In some cases,
students are required to travel to the provider country for some hands-on, laboratory,
or internship activities. Still in other cases, examinations of students are done locally
under supervised conditions arranged for by the provider institution.
Many successful examples of this mode of international education can be
found all over the globe. The University of the South Pacific, for example, provides
distance learning to students spread across a 30 million square kilometer geographic
area. According to Jurich (2000), this university offered 174 distance credit courses
that enrolled 16,317 students in 1997 alone. Turkey’s Anadolu University has almost
600,000 students, most of whom live in Germany, and other European and Asian
countries. The university uses the facilities of the national broadcasting network of
Turkey for the delivery of lectures and course materials (Jurich 2000). The African

234 Education and Globalization


Virtual University is another example of an international distance education program.
It operates in 16 countries and offers mainly professionally-and technically-oriented
programs. Lectures are done by professors from well known HEIs in Africa, Europe,
and North America, and the lectures are presented to students through videotapes or
live broadcasts via satellite or fiber optics uplink (Diagne 2000).
Language is the clear limiting factor in this model of international
education. The reach and popularity of such programs is constrained by the main
language used by the institutional provider. Although information and
communication technology can enable and enhance this mode of international
education, there are other modes of transmitting information through distance
mode. Thus, technology is more of an enabling factor that allows for better efficiency
in reach. At the same time, it is not a limiting factor for traditional modes of
international distance education.
Since technology is an enabling factor for the maximum effectiveness of
the programs, the quality of these programs largely depend on how well the distance-
mode learning materials and environment are designed for the specific type of
learners who use the distance mode. Such programs demand that the students be
very mature, independent, and strongly motivated. Currently there is still much
debate whether the alternative delivery systems used to provide for distance
education are designed well enough to provide adequately for the educational goals
of the special types of students who matriculate through distance mode (see e.g.,
Merisotis and Olsen 2000; Olsen 2000).

Locally Supported Distance Education. Locally supported distance education


is also referred to in some countries as “taught distance education.” What
differentiates this type of distance education from the standard distance education
is the mixed mode of study. That is, the education is provided using a combination
of classroom-based instruction and independent study, using the provider
institution’s curriculum and materials. Students usually have access to a locally
study center, which may be owned and operated by the provider institution, or may
be set up under a variety of joint-venture arrangements. There may even be “face-
to-face academic input” in very brief and concentrated periods for seminars and
workshops. In addition, the local study centers provide for library, computers,
teaching and learning areas, teachers and/or tutors.
The Technical Institute of Monterey in Mexico is an example of a locally
supported distance education, although at present its offerings are not yet
international (Wolff 2000). The institute offers undergraduate and graduate
programs in technically-and professionally-oriented areas, and had 70,000 students
in 26 campuses throughout Mexico in 1997. Their educational model has three
components: (a) instruction - which follows the conventional teacher-based models
but is delivered through live satellite transmission broadcast and the Internet; (b)
self-study – which is the student contribution to the learning process and involves

International Higher Education 235


sourcing books, notes, Internet websites, among others, and (c) collaboration – group
activities that are facilitated through the Internet and the local study centers.
Another interesting example of the mixed mode of study can be found in
the programs of the University of Phoenix in the US. As with the Technological
Institute of Monterey, the programs are still not international but they already enroll
68,000 students in 81 campuses and learning centers (Jackson 2000). What makes
this program interesting is that students are allowed to gain course credit for
competencies and skills gained from prior learning experiences. For example,
students are allowed 30 credits for workshops, seminars and other institutionally
sponsored courses, and another 30 credits for learning from experience that is
verified to be equivalent to learning from specific college courses.
The requirement of having local study centers makes this mode of distance
learning more difficult to adopt for distance education overseas (hence, the
examples). However, according to the Global Alliance for Transnational Education
(McBurnie and Pollock 1998), there are Australian HEIs that do have locally
supported distance education programs in countries in the Asia-Pacific region.

Twinning Programs. The concept of twinning programs involves the


implementation of a fully taught educational degree program in two sites, the
provider institution in one country and a host institution in another country. In
other countries like Australia and other Commonwealth nations, twinning programs
are called offshore programs. In some ways, twinning programs are like the locally-
supported distance education programs, but the twinning programs do not make
use of alternative delivery systems other than those actually used in the provider
institution. Students follow exactly the same curriculum, use the same materials,
have the same lectures, and have to pass the same examinations. The academic
teaching staff is typically from the host country, but they are selected by the provider
institution following the same hiring criteria.
In Australia, twinning or offshore programs typically involves doing part of
the coursework in the host country and part in the provider country. In Australia-
Malaysia twinning programs, the terminology “2+2” or “3+1” is commonly used to
refer to two years of study in Malaysia and two years in Australia, or three years in
Malaysia and one year in Australia, respectively. Although in some cases, the course
is taught completely offshore.
Australia is probably the leading country with such twinning/offshore
programs. In 1999, 35 Australian universities had 581 ongoing offshore programs,
more than 70 percent of which were in Singapore, Malaysia and Hongkong
(Australian Vice-Chancellors’ Committee 1999). However, Australian Universities
follow very strict requirements before a twinning/offshore program is approved.
Typically, extensive documentation is required involving information regarding
matters such as, providing evidence of the demand for the offshore program, an
analysis of how the offshore program will be comparable to the residential and

236 Education and Globalization


other competing programs, a business plan, a risk management plan, teaching-learning
resources, among others (see e.g., RMIT University 2000).
The financial arrangements in such twinning programs are mutually
beneficial for host and provider institutions. The provider institution gains the tuition
and fees that students typically pay, without having to spend for the full costs of
residential education. Moreover, provider institutions typically charge additional
fees for the maintenance of an offshore/twinning program. On the side of the
host institution, they also gain fees related to managing and maintaining the local
site. All these added fees are, of course, shared by (i.e., passed on to the) students.
Such programs are attractive to students in host countries, because the
students acquire credentials from a foreign institution without the full cost of
enrolling in a foreign country. Although typically, the students pay tuition fees
equivalent to that in the foreign country (and possibly more), the students still save
substantial amounts that would have been spent on travel-related expenses
(processing of immigration papers, airfare, accommodations, etc.). The credentials
received from such programs also enjoy better regard than those related to distance-
learning programs, as the students are perceived to undergo an educational process
that is still close to the traditional university experience.

Articulation Programs. Articulation programs are in many ways similar to


twinning programs. However, the students are not enrolled in a program of a foreign
country. They are still enrolled in a program in a local institution. However, the
credits earned in the local institution are fully recognized for credit by the provider
institution. This recognition facilitates the lateral entry or admission of students to
the programs of the foreign provider institution. So for example, the first two years
of study in a local university will earn the student a diploma or an associate degree
from the local university. This diploma or associate degree will be recognized by
the foreign university as sufficient for admission into the last one or two years in the
baccalaureate program of the foreign institution.
Such programs are quite attractive because the student has a chance of
obtaining foreign credentials by attending only one or two years in a foreign
institution. The costs are likely to be lower than for a twinning program, as the
local rates for tuition and fees are applied during the first years of study.
However, articulation programs may have the effect of thinning the enrollment
for the major programs of the host institution. The host institution is used mainly for
the provision of the basic general education component of undergraduate education.
Students who can afford the one or two years in the foreign university will most likely
not stay in the local institution. In this regard, the articulation programs are usually
hosted by institutions that do not aspire to strengthen the advanced educational
components (i.e., major courses and graduate programs) of their own program
offerings. In this way, the local host institution might enjoy an increase in enrollment
in the general education offerings (which do not require high human capital costs).
At the same time the foreign provider institution can focus its own resources on the

International Higher Education 237


more specialized or major offerings (and thus focus their investments on the high
end of human and other capital requirements) and gain additional foreign student
enrollment in the process.

Branch Campuses. In some ways, branch campuses are similar to twinning


programs. However, in the strictest sense, branch campuses are full-fledged campuses
of the provider institution in a foreign country. Programs of the provider institution
are offered in the branch campus, and the programs are implemented fully from
admission to graduation. Thus, no other local institution is involved as a partner in
the enterprise. However, the campus may either be fully owned by the provider
institution, or a joint venture with local partners (particularly if local regulations
prohibit full ownership of educational institutions by foreigners.)
Such programs are rare, as the full-fledged universities are careful about
replicating their campuses in a foreign land as they risk their institutional reputations
if the administration of the branch campus is not handled well in very different
conditions. It is typically the smaller HEIs that focus on more professional and
technical programs that venture into such branch campuses, as the risks are probably
lower in their cases. The market for such branch campuses in the host country
might not also be very large in such cases, as only the appeal of foreign credential
could be the selling point. There might not be a strong “brand name” that could
be marketed on top of the foreign credentials.

Franchising Arrangements. Under franchising arrangements, a foreign


institution grants a host institution in a country the “license” or permission to offer
the foreign institution’s degree programs under specified conditions. A number of
observers have raised concerns about the practice of franchising. In particular, the
concerns are about the ethics regarding using an institution’s name. As a result of
this concern, many countries are more cautious about entering such arrangements.
According to McBurnie and Pollock (1998), for example, no Australian university
has entered into a franchising arrangement.

Internationalizing Curricula: Quality Assurance and Standards. Quality


assurance and standards have always been a concern of HEIs, but this concern has
always been addressed through more local or national efforts such as a national
accrediting system, or national minimum requirements and curricular standards,
among others. One development that globalization of higher education has that
given birth to the “internationalization” of these quality assurance systems and
standards. As the products of the higher educational systems now have to compete
in an open market economy, there is now a need to ensure that credentials obtained
from HEIs from different countries are equivalent. Thus, the quality of one student’s
credentials is no longer assessed in terms of local standards; there are now regional
and international standards against which credentials are evaluated.

238 Education and Globalization


Parallel to this trend, international groups have been formed to articulate such
standards, and the product are the so called, international benchmarks for curriculum,
student achievement, among others. One of the more famous of these groups is the
International Association for the Evaluation of Education Achievement (IEA), which
is an international cooperative organization of research centers, which are
independent from the respective national governments. Presently there are 54
research centers representing 53 countries (Belgium has two research centers on
each for the French and Flemish education sectors) from six continents. The
objective of the IEA is “to conduct comparative studies that focus on educational
policies so as to enhance learning within and across systems of education” (IEA
2001). The studies conducted by the IEA can be characterized with the following
features:
“They are conducted on an international and a cooperative basis.
As such they allow researchers and policy makers to enter into a
dialogue with and to learn from their colleagues around the world.

“They also enable systems of education to view more clearly their


unique cultural situation from an international, comparative
perspective.

“They focus on educational policies and practices, thereby enabling


the development of a conceptual framework that clarifies issues,
suggests appropriate methods of investigation and uses those
analytic tools that best elucidate key factors and issued related to
student achievement. These actions result in validated measures
of educational outcomes and processes.” (IEA 2001)

However, the studies of the IEA mainly focus on basic education, the most famous
of these are the achievement, curriculum, and teaching benchmarking studies of
the Trends in International Mathematics and Science Study (TIMSS 2001).
Although there is no corresponding organization doing exactly the same type and
scope of work in higher education, there are groups such as the International
Network for Quality Assurance Agencies in Higher Education (INQAAHE 1999).
The INQAAHE is a formal network of organizations responsible for assuring quality
post-secondary education programs offered by institutions other than their own.
These include accrediting agencies, HEIs that accredit other institutions,
government or private commercial agencies that evaluate and/or undertake
accreditation activities. The main purpose of the INQAAHE is to collect and
disseminate information on current and developing theory and practice in the
assessment, improvement and maintenance of quality in higher education. The
INQAAHE has set several specific goals:

International Higher Education 239


• promote good practices in the maintenance and improvement of
quality in higher education;

• facilitate research into the practice of quality management in higher


education and its effectiveness;

• provide advice and expertise to assist the development of new


quality assurance agencies;

• facilitate links between accrediting bodies especially as they operate


across national borders;

• assist members to determine the standards of institutions operating


across national borders;

• permit better-informed international recognition of qualifications;

• assist in the development and use of credit transfer schemes to


enhance the mobility of students between institutions within and
across national borders; and

• enable members to be alert to dubious accrediting practices and


organizations.

Such networks provide an important mechanism to allow institutions to address


the problems of quality higher education and quality assurance. As Hilborne (1996)
found out, there is so much diversity in the educational tradition, culture, funding,
quality assurance and the accreditation of quality awards across countries, so much
so that there is even a problem of agreeing on a common definition of good practice
in higher education. The INQAAHE and other similar networks provide a platform,
which would, hopefully, allow for a framework that will allow for effective quality
assurance across countries.

Summary of Models of International Higher Education


The preceding sections showed a diverse range of activities that are presently
referred to as international education. The activities that were more recently
initiated were clearly envisioned to make higher education programs more attuned
and responsive to pressures and opportunities in a globalizing environment. These
new pressures call for more varied modes of providing higher education to enable
a very diverse range of individuals to acquire more sophisticated levels of knowledge
and skills that are needed to be competitive in this new environment. Thus, the
new models of international education feature alternative delivery systems, usually
capitalizing on the revolutions in information and communication technology, and

240 Education and Globalization


strategic alliances and collaborative efforts among various institutions that can more
efficiently provide for different levels of educational needs. On the other hand, the
more traditional activities of international education were born out of the spirit of
internationalism and cooperation. These activities were initiated to develop an
international quality to activities that were mainly confined in national and local
contexts. However, the preceding sections indicate that many of these traditional
modes of international education are being transformed in ways that make these
also more attuned and responsive to the pressures and opportunities afforded by
globalization.

Philippine Higher Education: A Brief Overview

In this section, we attempt to summarize some of the important features of


Philippine higher education that are relevant to the discussions on international
higher education. The discussion in this section does not aim to be comprehensive;
rather, the discussion focuses on a confined set of features that will directly bear on
the viability of the various models of higher education in the Philippine context.
The discussion points are organized around four main themes: efficiency, quality,
equity in access, external context.
The arguments and supporting data are culled from several important
reports, listed below:
• Philippine agenda for educational reform: The PCER Report (Presidential
Commission on Educational Reform, 2000)
• Philippine education for the 21st Century: The 1998 Philippine education
sector study (Asian Development Bank & World Bank, 1998); Technical
background paper No. 3: Higher education in the Philippines (Asian
Development Bank & World Bank, 1998)
• Efficiency and effectiveness (E. Tan, R. Borromeo, & C. Castel, in
The reform and development of higher education in the Philippines,
UNESCO Philippines, 2000)
• Meeting the challenges on access and equity of higher education
(M. Ibe, R. Perez, & C. Quebengco, in The reform and development of
higher education in the Philippines, UNESCO Philippines, 2000)
• State of Philippine education: Tension between equity and quality (J. R.
Cortes & N. R. Balmores, UP-CIDS, 192)

Efficiency
A number of concerns have been raised regarding the internal and external
efficiency of the higher educational system in the Philippines. Some of these
concerns are discussed in this section.

Proliferation of Public Institutions. As of 1999, there were 1357 higher education


institutions (HEIs) in the Philippines. Of this total, 1,147 (84.5 percent) are private

International Higher Education 241


institutions and the rest are state colleges and universities (108) and CHED supervised
institutions (102). About 75 percent of higher education students are enrolled in
private institutions (CHED 1997). However, the share of private institutions in higher
education delivery has decreased significantly since the mid-1960s with the increase
in the number of publicly funded HEIs. The number of state colleges and universities
increased by over 30 percent in the 1990s.
This proliferation of public intuitions is problematic for several reasons
(Johanson 1998). First, it requires substantial increases in public subsidies for higher
education at the expense of basic education. In 1999, public institutions accounted
for over 14 percent of the national education budget, up from over 9 percent in
1996. Because the social returns of higher education are low (the returns are
largely personal) as compared to basic education, increasing the share of the higher
education is not a cost-effective move.
Second, as the public funds available for higher education get scarce,
creating more public HEIs dilutes spending on these institutions.
Third, as most of the new public institutions are actually formerly secondary
institutions that were upgraded to tertiary institutions, the quality of educational
services provided by the public institutions tend to be of poor quality.
Fourth, the public institutions crowd out the private institutions in most
cases. In many cases, the public institutions are located in the same geographic
region where there is already a high density of private institutions. The public
institutions also offer the same program as the private institutions. As the tuition
and fees of the public institutions are much cheaper than most private institutions,
the former end up crowding out the latter.
Finally, as public schools have a higher per student cost (P15,702/student
in 1997) compared to private schools (P5,119/student), the crowding out of private
institutions makes the entire higher education system more costly and less cost-
effective. Reports indicate that if public institutions operate at the same cost per
student as private institutions, the government would save 5 billion pesos in one
year alone.

Efficiencies of Size. There are also indicators that the organizational features
of the existing institutions are inefficient. In 1997, the average enrollment was
about 2,500 students in public institutions and 1,750 for private institutions. From
1990 to 1997, the number of public institutions increased by 26 percent and private
institutions increased by 38 percent. This suggests that the current institutions are
too small and could be made more efficient through enrollment growth and
institutional mergers.

Student Flows. Another indicator of low efficiency of the Philippine higher


education system is the average survival rate of 49 percent (1997 data). This means
less than half of those who enter college or university were able to reach the fourth
year of studies. Moreover, the average graduation rate is only 61 percent, which

242 Education and Globalization


means that only three in every five students in the fourth year of study actually graduate
within the fourth year. The overall completion rate for the higher education system,
therefore, is about 30 percent. These statistics indicate that the actual cost per graduate
(i.e., average number of student years of instruction required to produce one graduate
times the average cost per year) is quite skewed. The financial waste, particularly of
public funds, is equally high for those students who eventually drop out without
completing their degree.

Articulation between Performance and Budget. Most institutions operate using


historically based budget systems. That is, this year’s budget is usually last year’s
budget with a specific proportion of adjustment. Thus, there exist no objective
means or measures for rationalizing budget allocations. This form of budget system
perpetuates the existing inefficiencies in the resource allocation practices. This
form of inefficiency is much more pronounced in public institutions, as private
institutions have stronger incentives to make efficient use of income.

Programs. The Philippine higher education system is also criticized for


having low external efficiency. The range of program offerings will indicate that
HEIs tend to offer degree programs that are of low priority but are less expensive to
maintain (e.g., business/commerce, teacher education), and not high priority
programs (e.g., science, technology, and graduate education) that will have stronger
long term social returns. The latter programs are more expensive but have low
return of investment for the institutions. Moreover, there is low market demand
for the latter programs, as these tend to be more expensive and are not perceived
to be good vehicles for attaining immediate and high-earning employment.

Quality
It is quite difficult to arrive at a common agreement regarding how quality
higher education should be defined. For purposes of this overview, we refer to a
few indicators of quality, as regards the inputs, processes, and outputs of the higher
educational system.

Faculty. Data from the Commission on Higher Education (1997) indicate


that only 7 percent of faculty members of higher education institutions have doctoral
degrees, and only 33 percent have some graduate qualification (i.e., Master’s degree
or equivalent specialized training). Thus, about 2/3 of all those handling higher
education courses only have Bachelor’s degrees. In the areas of science, engineering,
business and information technology, those with graduate degrees account for less
than 20 percent of the faculty. If we consider that in most institutions, doctoral and
master’s degree holders are given administrative positions and other nonteaching
assignments, the overwhelming majority of higher education holders are handled
by Bachelor’s degree holders. One reason for the relatively low educational
attainment of higher education faculty is the fact that many HEIs are actually

International Higher Education 243


secondary institutions that were grouped together and upgraded to the tertiary level.
Moreover, the incentives for faculty members who finish graduate degrees are
perceived to be not commensurate to the financial and other personal costs that
faculty members have to invest to complete a graduate degree. Finally, graduate
education in the Philippines is also not large enough to meet the internal needs of
the higher educational system for qualified faculty.
Students easily perceive the impact of this deficiency on the quality of
education. In a tracer study of graduates of Philippine colleges and universities,
the faculty obtained the lowest quality rating among the respondents (CHED 1998).

Instructional Facilities. An important resource for assuring quality higher


education is the institution’s library. Surveys indicate that most institutions have
very low absolute volumes of acquisitions, and extremely low utilization rates of
books (from zero to five borrowings per year, even among the faculty members).
According to Cortes (1993 in CHED 1995) found that the majority of HEIs had
only 2,500 to 5,000 book titles in their library collections. Subscriptions to disciplinal
journals are nonexistent in many institutions.

Curriculum. The Commission on Higher Education (CHED) has set up


technical panels to establish minimum requirements for curricular offerings of HEIs.
However, in most cases these prescriptions tend to be overly detailed specifications
of courses that need to be completed. There is no articulation of a framework of
cognitive, affective, other target knowledge and skills that the curriculum is supposed
to help develop in the students, nor is there an articulation of a framework or
system for assessing whether students are attaining the desired knowledge and skills.
Observers have noted that often the higher education curricula are too broad, and
include too many unrelated topics. The overload of unrelated topics often leads to
a superficial coverage of the material.
The overly detailed prescriptions of the CHED prevent institutions from
experimenting with better and more innovative curricula, assuming the institutions
have the capability of doing so. State colleges and universities have their own charter
and are therefore not under the jurisdiction of the Commission. Yet most of these
institutions are incapable of and therefore have not developed more progressive
and responsive curricula, and for the most part follow the same type of curricula
implemented by other types of institutions.

Performance in Licensure Examinations. The most frequently used indicator


of quality is the performance in licensure examinations in the various disciplines
and professions. The overall passing rates are quite low (around 40 percent on the
average). Unfortunately, this low passing rate might even be overstating the quality
of HEIs as most graduates of these institutions who are not likely to pass the exams
either do not bother to take the exams or are prevented from doing so by their
institutions.

244 Education and Globalization


The programs that enjoy high levels of enrollment are unfortunately also
those where the students perform badly in the licensure examinations. The passing
rate in accountancy is around 16 percent, for teacher education, 30 percent, and for
civil engineering 32 percent.
It must be noted that there is a very wide variation in performance among the
various HEIs. Some of the elite institutions have consistent passing rates of over 90
percent. Yet there are 293 institutions that have zero passing rates from 1993 to 1997
(Professional Regulation Commission 1998). This number corresponds to about 12
percent of all institutions offering the programs. But the distribution in passing rates
is very skewed. A 1995 Task Force of the Commission on Higher Education (1995)
studied this matter, and found that there is a big drop in passing rates between the
top three universities (Ateneo de Manila University, De La Salle University, University
of the Philippines) and the next best schools. Thus, an extremely small number of
institutions have high passing percentages, and a large majority of institutions have
low or even zero passing rates in all programs.

Accreditation. One of the mechanisms that have been set up to improve


quality in Philippine higher education is the system of voluntary accreditation. Much
progress has been made, particularly in the 1990s; yet so far, only 13.3 percent of
schools nationwide have accredited programs. Most institutions complain that the
process of applying for accreditation is too difficult (e.g., requiring the completion
of voluminous forms and the compilation of even more voluminous documents)
and requires the commitment of substantial financial resources on the part of the
institution. Most institutions do not have internal systems for maintaining data on
the various quality performance indicators, and thus have to set up task forces and
committees with additional staff members to comply with the accreditation
requirements.
Moreover, there is a growing concern that the standards being maintained
by the various accrediting organizations vary. In particular, the accrediting system
for public institutions is widely reputed as applying rather low standards for
accreditation.

Equity in Access
If one looks at statistics, one would not conclude that there is a problem of
access to higher education in the Philippines. Based on 1998 data, 2.4 million
Filipinos are enrolled in HEIs. According to UNESCO statistics, the Philippines
ranks 24th worldwide on proportion of higher education enrollment to the general
population (2,981 students per 100,000 population in 1995). The number of HEIs
in the Philippines is purported by some as second in the world only to the USA
(Johanson 1998). The transition rate between secondary and tertiary education is
very high (about 90 percent) in 1999, so that virtually all students who finish high
school get to enter a college or university.

International Higher Education 245


These statistics notwithstanding, there is a real problem of equity in access to
HEIs in the Philippines. In particular, the problems relate to the following: geographic
location of institutions, admission requirements of higher education, and the cost of
education and limited financial assistance. The discussion will also show that the
problem of equity in access is particularly strong if one considers access to quality
higher education (Bernardo 1997).

Geographic Concentration. HEIs are not evenly distributed in the country if


one considers geographic location. Over 31 percent of all students enrol in
institutions in the National Capital Region (NCR), even as the NCR accounts for
only 15 percent of the national population. In the other regions, HEIs tend to be
located in or near the urban centers. Given that most higher education institutions
are private institutions and are dependent on market demand for their financial
viability, it is understandable that these institutions would cluster around the above
locations where the higher education market is dense. However, this reality makes
it more difficult for students from the rural areas to access higher education, as the
financial and social costs of relocating to an urban center are often prohibitive for
most families from these areas.
Theoretically, the public institutions should be situated in locations where
the private institutions cannot be. Because public institutions are not dependent
on tuition for their viability, they should not be subject to the market constraints as
private institutions and can thus thrive in areas which have been neglected by private
institutions. To some extent the public institutions do address this problem of
geographic access. However, statistics still show that the public institutions are still
geographically overlap with the private institutions. Consider the regional
distribution, for example. Among the regions, Regions III and IV rank second and
third in terms of number of private HEIs, yet they also have the most number of
state colleges and universities. The regional distribution of public HEIs does not
indicate that these institutions are trying to address the areas that were previously
or are presently being neglected by the private sector.
Better quality HEIs are also concentrated in few regions. All the five
institutions included Category A by the CHED Task Force (1995) are in the NCR
(although, the UP has campuses outside NCR, the better campuses are in the NCR
and in a nearby province – Diliman, Manila, and Los Baños). As regards performance
in licensure exams, institutions in the NCR consistently post higher passing rates
compared to those from other regions (PRC 1998). Thus, high school graduates
from other regions not only have problems of access to higher education; they also
have less access to quality higher education programs.

Admission Requirements. The problem of equity in access to quality education


is linked to the variety of admission requirements in the different HEIs. The better
quality institutions have selective admission policies. Most of the students who meet
the stringent admission requirements are those who come from elite private sectarian

246 Education and Globalization


high schools and the few special science high schools. Thus, the larger majority of
high school graduates who come from public high schools and nonsectarian private
schools, where the quality of education is lower, have poor chances of getting admitted
to these quality educational institutions. Instead, they go to the low-end public or
nonsectarian private institutions with open admission policies. Thus, according to
James (1991), the elite colleges and universities draw heavily from the wealthiest and
most educated sectors of society.
Unfortunately, this trend applies even to the elite public institutions. The
University of the Philippines rejects more than 95 percent of its applicants. The
corresponding figures for the Central Luzon State University and thee University
of Southeastern Philippines are 75 percent and 90 percent, respectively. Most of
those rejected from these schools are from the lower income families who were not
able to afford better quality secondary education, and those who are admitted come
from the higher income families. Thus, there exists a rather ironic situation where
some students from wealthy families attend public institutions and enjoy highly
subsidized tuition and student fees, while some students from poor families have to
pay higher tuition and student fees in poorer quality private institutions.

Cost of Higher Education. The most obvious factor related to the problem of
equity in access is the cost of higher education. It is true that there is a wide variety
in the costs of matriculation. In some schools, the tuition and fees per year is as
low as P5,000; while in other schools it is as high as P100,000. Some public institutions
still charge a low of P8 per unit, while some private institutions now charge over
P1,000 per unit. Other student fees range from P1,000 to P45,000 per year. However,
the variety in costs is highly correlated with the quality of education.
Unfortunately, students’ choices are constrained by financial resources.
There is little or no credit available for higher education, and scholarships are also
limited. There are government supported loan assistance programs (e.g., Study
Now, Pay Later program), but the beneficiaries of these programs account for 0.2
percent of the national student enrollment. In terms of scholarships, the CHED
provides financial assistance to students who attend private institutions through
the Private Education Student Financial Assistance (PESFA) program, but coverage
is less than 1 percent of the total enrollment in private institutions. There are
other forms of scholarships for students in public institutions, but these cover about
1.3 percent of total student enrollment. Because of the limited scope of financial
assistance for higher education, most students can pursue only the higher education
option that they can afford. According to Tan (1995),
“the effective demand for higher education follows the income
distribution of families – the few rich students can afford all the
options, including the best of foreign education; a large number
from the middle class can afford institutions with middle-level fees;
and the masses of the poor, those institutions with the lowest fees.
The poorest families have zero higher education option. This point

International Higher Education 247


is reflected in the fee structure of the higher education system. There
are only a few high-cost (higher education institutions) since only a
small proportion of the population is rich and can afford them…
Because of the capital market imperfections a large number of
students is forced into the low-quality inexpensive programs and
schools, causing these to proliferate.”

External Context
Some of the problems discussed in the earlier sections are brought about
by certain factors in the external environment of HEIs. Three factors will be
discussed in this section: the absence of a credit market, inadequate information
about higher education options and returns, and governance of higher education.

Absent Credit Market. In the previous section, we already noted that credit
for higher education is extremely limited. What is available by way of credit is
largely supplied by informal sources (e.g., money lenders, relatives, pawnshops,
etc.), and is not large enough to cater to the large number of potential small
borrowers. The absence of this credit market creates the situation where the financial
resources of families and students limit their higher education options (see previous
section on Cost of Higher Education). This constraint also affects the options of HEIs
when it comes to program offerings. Most schools operate programs that are less
expensive (i.e., do not require costly equipment, special laboratories, etc.). This is
one of the reasons there is a proliferation of programs in commerce, accountancy,
liberal arts, and teacher education, as these programs can be maintained by using
mainly teacher and classroom inputs.

Information on Options and Returns. Presently, there is very little information


regarding the various educational institutions and programs and their comparative
performance. What exists is not available to the general public. Thus, the higher
education market is not provided the necessary inputs to make informed decisions
regarding higher educational services. Ideally, students and their families should
have access to information such as, school program offerings, performance in
licensure exams, credential of faculty, completion rates, the quality of the schools
relative to the fees they charge, expected employability and earnings according to
the program, institution, and degree level. Some of this information is actually
available (e.g., in reports of the PRC, FAPE, CHED, NSO, etc.) but this information
is not available to the public in useful forms.
This lack of publicly accessible information about educational options and
their returns has perpetuated the inefficiencies, weaknesses, and inequities in
Philippine higher education. For example, students unwittingly decide to enroll
and pay tuition in poor quality institutions instead of better quality institutions that
cost the same. Students enroll in less expensive programs that have low employability
and earning potentials. Students enroll in schools that have had zero passers in the

248 Education and Globalization


licensure examinations. Such decisions allow poor quality, inefficient institutions to
survive, and maybe even make a profit. Yet such decisions would likely be avoided if
better public information about the options and returns of higher education were
available.

External Governance. Ideally, the imperfections in the higher education


environment just discussed in the previous sections would be addressed by the
external governing agency of higher education in the Philippines, the Commission
on Higher Education (CHED). However, the CHED has not adequately done so,
and several factors have been noted to account for this inadequacy. Some of the
factors noted by Johanson (1998) are related to the governance of the CHED and
the lack of a strategic decision. In particular, the organizational structure, particularly
the leadership structure involving five Commissioners, is vague and inefficient. The
Commissions do not have well-defined and appropriate roles. There is no clear
separation between policymaking and execution, or between decisionmaking and
implementation.
Historically, the Philippine higher educational system is expansionist in
character and places little importance on quality. In light of this fact, there is a
great need for the CHED to reform the character of the higher education system,
set different goals and more strategic plans for the system. This is why the original
intention was to make the CHED a development agency. But over the years it has
turned out to be more of a regulatory agency; and the CHED has not emphasized
strategic planning for the system. Much of the CHED’s time and resources is devoted
to routine regulatory functions such as monitoring special orders regarding the
graduation of students. Not enough time and resources are spent on studying
strategic issues and tradeoffs to improve the system. An external observer noted,
“that too many activities are pursued, that efforts and resources are fragmented
rather than concentrated to make an impact” (Johanson 1998).
Thus, many sectors perceive the CHED as an ineffective institution. It has
not provided the governance needed to undertake strategic policy and reform
initiatives that will address the problems in the higher education environment.

Concluding Remarks
This part of the report painted a rather gloomy portrait of higher education
in the Philippines as regards efficiency, quality, access, and the external context,
even as the existence of wide diversity in inputs, processes, and outputs was also
noted. But it should be noted that the overview was derived from reports that were
intended to formulate policy and reform recommendations, and thus it is
understandable that the weaknesses of the system were put on the foreground. For
purposes of the present report, this generally negative portrait will serve as the
context within which international education models will be considered. That is, it
is within this context that we shall examine the possibilities and constraints that
may be involved in implementing specific models or activities of international higher

International Higher Education 249


education. It is also with reference to this context that we will consider the impact of
international higher education on Philippine higher education.

INTERNATIONAL HIGHER EDUCATION IN THE PHILIPPINES: PROSPECTS


AND ISSUES

How will the Philippine higher educational system respond to the current
models and activities of internationalization that are taking form in different parts
of the globe? In what ways can these internationalizing activities take shape in the
Philippine higher education context? What are the opportunities and constraints
related to the setting in of such activities? How will these forces of
internationalization change Philippine higher education institutions?
In answering these questions, it is important to recall that most of the present
models and activities of internationalizing higher education are now largely shaped
by the demands of globalization. Thus, we need to consider factors related to the
readiness to participate and compete in a more globalized higher education
environment, such as the different indicators of quality and efficiency of Philippine
higher education. At the same time, we need to consider how internationalization
with globalization might impact on what is presently a rather problematic higher
education system with clear shortcomings in quality, efficiency, and equity in access.
The discussion in the part of the report is divided into two main parts. The
first part talks about the opportunities and constraints attendant to the possible
implementation of the various internationalization models and activities. The second
part addresses the possible consequences of the implementation of such models
and activities to the existing processes and structures of Philippine higher education.

INTERNATIONALIZING PHILIPPINE HIGHER EDUCATION: PROSPECTS AND


ISSUES
In this section, the different opportunities for participating in the various
models of international higher education are discussed in light of the prospects
and constraints in the Philippine higher education context. The discussion is
organized into subsections pertaining to the different types of activities.

Student and Staff Mobility. The main constraint as regards student and
academic staff mobility is financial. As the discussion in Part 3 indicated, current
flows in academic mobility are largely determined by the availability of funds for
specific directions of exchange. The financial constraints are partly due to the
observation that most students and scholars would prefer to study in more advanced
HEIs (with more reputable faculty members, more extensive libraries and research
facilities, etc.) and these institutions are more likely located in the developed
countries.
In this regard, the likelihood that more Filipino students and scholars would
be able to participate more extensively in such international mobility and exchange

250 Education and Globalization


programs is dependent on the availability of funds for this purpose. Thus, students
from high-income families, and institutions with sizeable financial endowments would
be more likely to participate in international mobility programs. On the other hand,
students from low- to middle-income families, and institutions that have inadequate
financial resources will not enjoy these programs. In the past, such programs received
a boost when government-brokered programs (e.g., the Engineering and Science
Education Program or ESEP) were set up. In the absence of such medium- and long-
term initiatives, it is unlikely that there will be an increase in the number of Filipino
students and scholars participating in such activities.
On the other hand, the prospect seems better for promoting more
international students and scholars to study in the Philippines. Although it is unlikely
that the Philippines will suddenly be very attractive to scholars from developing
institutions, the possibility of promoting student and scholarly mobility to the
Philippines is there if one considers other less developed countries. In particular, if
Philippine universities can project very clear strengths in specific disciplines and/
or professional fields, scholars and students from other developing countries might
be attracted to come. In this regard, there needs to be a good reckoning of the
areas of relative strength among HEIs in the country. However, there needs to be
an overhaul of current policies of the Bureau of Immigration and Deportation (BID)
related to the processing of student visas and special study permits as the current
policies and the corrupt practices that are attendant to the policies’ implementation
create major disincentives for foreign students and scholars to come to the
Philippines.

Internationalizing Curricula: International Studies. In the leading Philippine


universities, there exist a few international studies and area studies programs.
According to Caoili and Valenzuela (2000), the international dimension is
incorporated in the curricula of various programs in business and economics,
engineering, health, social sciences, and the humanities. However, these initiatives
are still small in scale and no major changes in the character of curricula can be
observed. This is so because the CHED’s various Technical Panels effectively
standardize curricular offerings in the various fields of study. Only the leading
institutions (those that have level III accreditation) and state colleges and universities
can actually experiment with the features of their curricula. It is not surprising that
these small initiatives to introduce the international dimension to some curricula
are found in the leading institutions in Metro Manila. In other institutions and in
other regions of the country, the most visible form of internationalization is the
offering of foreign language courses.
The prospect of developing more international curricula depends on
whether universities will be allowed to frame and construct their own curricula in
ways that can meaningfully incorporate the international dimension. If and when
institutions are allowed to do so, the limiting factor would be the capability of the
institution to offer and maintain such curricular features. Thus, the institutions

International Higher Education 251


would have to consider whether their faculty members have the frameworks that can
make these international dimensions meaningful to the students in the context of
their education. Therefore, universities that wish to develop more “international”
curricula should also endeavor to develop a more “international” faculty, that is, faculty
members who have a good understanding of globalization and internationalization as
these relate to the issues and methodologies in the various disciplines and areas of
study.

Research Collaborations. If Philippine universities wish to be more actively


involved in international research collaborations, at least two things need to be
attended to. First, universities should develop their research capabilities. This
means developing better research faculty, research facilities, support services, and
research management policies. Second, Philippine universities should be able to
identify areas of research where local researchers and research institutions can
become significant research partners and collaborators. As discussed in Part 3,
there is currently a distributed knowledge production system in place globally.
Potential research collaborators will seek partners who have unquestionable research
capabilities in areas and/or types of research activities that complement their own
research programs.
In this regard, Philippine universities should seriously consider their
research development strategies and aim to develop more narrowly defined niches
in research. Given the capital-intensive nature of research activities, it will be difficult
for Philippine universities to develop adequate research capabilities in a wide range
of fields. A more strategic approach would be for each university to identify its
areas of specialization for research. Hopefully the areas chosen by the different
universities will complement rather than compete with the choices of the others;
thus, the limited research funds can be allocated more rationally and efficaciously.
The CHED can exercise better and more strategic leadership in this regard.
Currently, the CHED’s blanket research policy that implicitly requires all HEIs, no
matter how miniscule, to develop research programs. Admittedly, the research
agenda of CHED is developmental in intention; however, the development plan is
not strategic. The CHED seems to think that all colleges and universities should be
research institutions, but this need not be so. In fact the Philippines does not need
that many research universities, and it certainly cannot afford that many (Bernardo
1998). The CHED’s present approach does not seem to consider the intensive
capitalization and medium term human resource development efforts that need to
be put in place before viable research programs can be set. This is evidenced by the
miniscule research grants that are awarded by the CHED that have the effect of
adding to the universities burden (as it will have to shoulder much of the actual
research costs itself) rather than helping them. Although it has prioritized the
areas of research in relation to national development goals, CHED has not reckoned
with structural deficiencies in the vast majority of HEIs. As a result, there is no
efficient means of supporting research activities. In practice, all HEIs are treated in

252 Education and Globalization


the same way, which often means making decisions that tend to converge with the
lowest common denominator (e.g., the project leader is paid a maximum of P3,000
a month in honorarium – a sum that is sufficient to get the faculty member a teaching
deloading in a remote state university, but is pittance for a faculty member in the
leading private universities). This approach does not make for a more strategic
allocation of the limited research development funds.
Interestingly, individual faculty researchers in the leading universities already
maintain research collaborations with scholars from other countries. These research
links are often maintained at the personal level and depend on existing funds and
other resources that the researchers already have access to. But if Philippine
universities and researchers will become more active participants in global research,
systematic efforts must be undertaken to expand such individual efforts and to ensure
their sustainability.

International Networks. In any network of HEIs, the biggest bottleneck for


greater cooperation is the diversity among the participating institutions. Given the
diversity in the inputs, processes, and outputs characteristic of Philippine HEIs, it is
hard to be optimistic regarding a more intensive Philippine involvement in
international networks. Currently, Philippine participation in the more progressive
international networks is selective. For example, in the UNESCO-affiliated
International Association of Universities (IAU), only De La Salle University and the
University of the Philippines are members (the former also sits in the Administrative
Board of the IFU). Perhaps, only these two and possibly a few other Philippine
universities have systems that are similar enough (or that are not too different)
from the universities of other countries. It is very likely that some institutions will
be “more different than others” which means that some institutions will have better
opportunities for participating in and benefiting from such international networks.
International networks such as the Universitas 21 include as part of their
programs the attempt to make the member institutions move towards more similar
structures and standards. But it should be noted that the member institutions of
Universitas 21 all meet certain minimum requirements and thus form a fairly
homogenous grouping.
All things considered, institutions that have stronger capabilities can take
advantage of opportunities afforded by affiliation with such networks, but the weaker
institutions are not likely to be able to do so.

Transnational Distance Education. The local market for different forms of


transnational distance education programs is probably small, particularly as the
costs of such programs are prohibitive. As the demand for higher education
programs follows the income distribution level of Filipinos, we could expect that
the expansion of such programs locally is not likely to prosper unless the costs of
the program are substantially reduced.

International Higher Education 253


However, it is possible that a specialized market might exist for such programs.
In particular, such programs might be suited for adult and professional students who
do not have the time to attend regular classes, but who are well motivated and can be
independent learners, as well. The market can be supported by private companies
that will see such programs as worthwhile investments in their human resource
development programs.
From a different perspective, such distance programs may provide Philippine
HEIs an opportunity to increase its enrollment base. Specific degree programs can
be developed and marketed for a more international or regional audience. The best
candidate programs are those where the Philippine institutions already have a relative
competitive advantage, but this choice has to be studied more carefully. Clearly, only
the more developed institutions would have the wherewithal to develop, package,
and market such programs, if at all. There is of course the possibility that unscrupulous
agents might run diploma mills out of such schemes, and the appropriate government
agencies ought to be ready to police such agents.
In this regard, the CHED has already issued guidelines regarding the
operation of open learning and distance education programs (CHED M. O. No.
35, Series of 2000). The guidelines specify a lot of mechanisms to ensure quality
control in the programs (e.g., regarding curriculum and materials development,
mode of delivery, assessment, support services, and program management), but
the guidelines also limit the operation of such programs to institutions that have
been designated as Centers of Excellence and Centers of Development, or have
been recognized with Level III accreditation.

Twinning and Articulation Programs. The various forms of twinning and


articulation programs (i.e., those that will allow students to obtain credentials from
a foreign university) will certainly be attractive to many Filipino students. But as
with all other options, the actual market for the programs will be determined by
costs of such programs, as the income distribution level of Filipino families shapes
the options. Currently, some programs of this type already exists, but the institutions
are not linked with the high-end foreign institutions and the program offering are
also limited to a small range of professional education courses. The Thames
International Business School (operating in the National Capital Region), for
example, offers only business and communication related programs following a
2+2 or 2+1 twinning scheme, and that utilize a lot of more innovative delivery systems
that utilize information and communication technology. The affiliated institutions
are British, Australian, New Zealand, Canadian, and American institutions, which
are not in the highest level in terms of academic reputation. The students pay fees
that are in the same range as the most expensive private colleges or universities
(approximately 35,000 to 40,000 pesos per semester), but that are competitive if
one considers the costs of international education. Such programs are targeted to
the higher end of the higher education market in the Philippines.

254 Education and Globalization


Quite recently, representatives of the private higher education sector in the
Philippines (i.e., the Philippine Association of Colleges and Universities or PACU,
2002) raised very strong concerns about the emergence of a number of transnational
higher education programs that offer distance education programs, twinning and
articulation programs. The concern relates to what is perceived to be the unfair
competition posed by such international programs. According to the PACU, these
new international programs are not subject to the regulation of the CHED and do not
have to comply with minimum requirements set by the CHED. Of particular concern
is the fact that these schools do not have to comply with minimum requirements for
capitalization, physical facilities, and curriculum. Thus, these international programs
can exist even if they only rent cheap office spaces in commercial buildings, unlike
Philippine HEI’s that have to show ownership or long term lease agreements for their
schools’ physical facilities. The international programs also do not have to comply
with requirements for library holdings, school clinic, guidance and counseling offices,
among others. The international programs can also offer “shorter” curricula, as they
do not have to comply with the curricular requirements mandated by the CHED.
These examples, according to the PACU, make it easier and cheaper for the
international programs to operate, and thus they can offer extremely competetive
tuition fees. This is particularly true for the transnational distance education programs,
where the overhead costs would be the lowest as the “taught” component is minimal.
It is hard to forecast the actual prospects of such institutions in the Philippines,
and it largely depends on how high or how low the costs of such international programs
can be maintained. But if, as can be most expected, the costs remain higher than most
Philippine HEIs, their target market shall be the high-end market of higher education
which is obviously very small. The highest end of the market actually already has
access to the traditional forms of foreign or international education. Therefore, the
viability of such programs is likely to depend on whether or not they will be able to
attract the upper middle class market, which traditionally goes to the exclusive private
schools in Manila. In this regard, the lure of international credentials might be a
critical factor, as most of the exclusive schools have yet to have similar credentialing
mechanisms. In the same vein, the existing high-end (exclusive private) institutions
might more directly feel the impact of the entry of such institutions. In a manner of
speaking, they are the competition. Given, the imperfect market conditions,
particularly the absence of accurate and reliable information about outcomes of higher
education, it is hard to say how the market will respond to these new options. The
worse case scenario for the high-end private institutions is that some of them might be
squeezed out of the market. However, if the private institutions can take steps to
provide systems where their graduates also obtain some form of international
credentials, they might actually thrive in this competitive environment.
Generally, it seems that all existing “traditional” HEIs, whether private or
public, should find ways to better position themselves in this new field of competition
in the market. This task would require that local institutions find ways of establishing

International Higher Education 255


equivalencies with appropriate foreign institutions, so as to set up some form of
twinning or articulation program. Most local institutions might find it difficult to
adequately respond to these types of challenges (which partly explains the strong
apprehensions of the PACU 2002), so it seems that only the elite institutions might
be in a good position to compete in this new field.
On the whole, the entry of such institutions might not impact on the larger
proportion of low-end institutions. These low-end institutions will continue to service
and maybe even thrive by catering to the low-income sector of Philippine society.
The institutions that are most at risk are those that cater to the middle to upper
range of the income distribution, as they will be in direct competition with
international HEIs.
Looking at the matter from another perspective, the high-end educational
institutions in the country can appropriate these models of international higher
education to penetrate other higher education markets in the region. That is, local
institutions that have strong programs in specific fields may consider offering
twinning and articulation programs in other countries in the region that have
relatively weaker educational options in the chosen fields. The success of such
ventures will depend on how well the institutions can market their “brand name,”
so to speak, to the target countries. In this regard, the requirements usually
considered by more developed countries in opening twinning and articulation
programs may be used as guides.
As regards these types of programs, the CHED has already approved a memo
specifying the policies and guidelines in the implementation of international linkages
and twinning programs (CHED M.O. No. 01, Series of 2000). The memorandum
order actually seeks to protect local students from unscrupulous agents who might
use local institutions as conduits to offer diplomas and substandard education. The
main restrictions imposed by the CMO is that only institutions that have at least
level II accreditation may participate in such arrangements and only with partner
foreign institutions that also have similar high accreditation levels. The CHED
shall also be party in the design of the agreements that bind the linkages, and it
shall set up monitoring systems for evaluating such programs. However, there are
very strong concerns about whether the CHED is able to effectively implement and
monitor this policy, given the existence of several international twinning and
articulation programs between international agencies and local organizations (e.g.,
business ventures) that are not under the jurisdiction of the CHED.

International Quality Assurance Systems. Participation in international quality


assurance systems is ideal for institutions that seek to participate in the various forms
of open market transnational education. But as earlier reported, thus far, only
around 13 percent of Philippine HEIs have some form of local accreditation; most
of the schools are operationally incapable of complying with the requirements of
the quality assurance processes. Thus, as with the earlier options, it is most likely
that only the more developed institutions can participate in such systems, if at all.

256 Education and Globalization


The overwhelming majority of HEIs would not be capable of participating, and would
thus not be able to benefit from the consequences of such quality assurance systems.
Regardless of the specific motivations for participating in such quality
assurance systems, institutions that do participate are likely to improve particular
aspects of their operations, in line with the requirements of accreditation.
More importantly, participation in such quality assurance mechanisms
should have the long-term effect of improving the public information about quality
of HEIs (at least as far as certain input and process indicators are concerned).
Presently, the general public does not yet know the difference between accredited
and non-accredited programs. But if the various institutions start more aggressively
using (local or international) accreditation as part of their marketing strategies to
attract students, the market might start thinking of accreditation as an important
factor to consider.

Summary. The preceding discussions suggest that the ability to participate


in the various forms of international education in the Philippines would be
constrained by the same factors that characterize the existing inequities and
weaknesses in Philippine higher education. That is, student participation in such
activities will be determined by their family income. Their opportunity to participate
is likely to increase as they move up in the income level distribution. Moreover, a
higher educational institution’s ability to participate in similar activities will also be
determined by their fiscal resources and how developed their faculty and other
educational resources are. The high-end institutions are not only in a better position
to participate in the various types of international programs, they can also capitalize
on the opportunities afforded by internationalization to further their strengths in
specific areas, although there are also threats by way of stronger external competition
in specific areas. On the other hand, the overwhelming majority of Philippine
institutions will most likely be unaffected by such development. But given the
imperfect conditions of the market, especially the strong influence of the income
distribution levels on higher education options, their share of the higher education
market will probably be secure.

CONSEQUENCES OF INTERNATIONALIZING HIGHER EDUCATION IN THE


PHILIPPINES
As participation in international higher education is most likely to be shaped
by the same factors presently determining the character of Philippine higher
education, it is quite likely that the internationalizing cum globalization of higher
education might have the effect of exacerbating the existing inequities, weaknesses,
and inefficiencies in Philippine higher education.
Take for example, the existing disparity in the quality of inputs, processes,
and outputs among HEIs. The high-end institutions are in a good position to
participate, capitalize, and benefit from the various types of international education

International Higher Education 257


programs (e.g., faculty exchange, research collaborations, international quality
assurance systems, even twinning and articulation programs). If managed properly,
the institutions will mostly likely improve the quality of the inputs (student admission,
faculty credentials, access to electronic libraries and databases, etc.) and processes
(curricular and instructional innovations, monitoring and assessment systems, etc.).
On the other hand, the other types of institutions that will have very limited or no
participation in such programs will stay in their present state. Most state colleges
and universities are unlikely to enjoy sudden increases in their government budget
allocations to undertake the improvements needed to participate in international
education programs. Similarly, the weak private institutions that depend solely on
tuition fees will mostly likely not have the spare income to finance similar
improvements. Even if they increase tuition and fees, the law requires that almost
all the increase go to improving teacher’s salaries, thus not leaving the institutions
the flexibility to strategically allocate whatever additional income they may get on
institutional development projects.
Analogously, the inequity in access to quality higher education will also be
intensified. The students from high-income families, those that already had the
widest range of higher education options, will even have a wider range of options
available, if and when various forms of open market transnational education
programs start operating more fully in the Philippines. Such options will still be
way out of reach for the majority of students from low- and middle-income families.
The lowest quality institutions will continue to cater to the lowest income groups,
offering the narrowest range of inexpensive degree programs, all of which have
extremely poor quality.
International higher education programs might also have the effect of
furthering the external inefficiency of the higher education system. At present,
most program offerings of Philippine HEIs are inexpensive degree programs that
are of low priority in terms of national development concerns. High priority
programs or those that are badly needed for regional and national development
goals are not being offered. Internationalizing higher education might force
institutions to design their program offerings to address human resource
development needs of the global market, or even to address the needs of other
countries in the new trading blocs. Thus, educational programs will move farther
away from addressing the needs in the different regions of the country, further
worsening the external efficiency of our higher educational system.
Another possible negative consequence of the internationalization of higher
education relates to the emerging presence of different types transnational education
programs. Given the absence of rational regulatory policies relating to the operation
of such programs, there are two sectors that are at risk. First and more important
are the consumers of such programs who do not have any credible means of
determining whether these international programs are providing good quality
instructions, curricula, programs, among others. Many of these institutions also
promise articulation and/or transfer of credits to foreign universities, and also

258 Education and Globalization


employment in international agencies, but there is no effective means of verifying the
credibility of such claims. The other sector at risk is the private higher education
sector, which might suffer from unfair competition from such institutions if they
continue to operate in an unregulated environment where they do not have to comply
with the rather strict requirements imposed by the CHED on most Philippine higher
education institutions.
However, not all the possible consequences of internationalization to
Philippine higher education are negative. For example, we could be underestimating
the effect of internationalizing higher education on improving the middle-level
higher education institutions. The opportunities afforded by the changing global
work environment might embolden these institutions to realign or redirect their
institutional targets and offerings. The global work environment is so diversified
that it is possible that specific institutions can design cost effective but internationally
competitive programs in very specific areas that will boost the overall quality of the
institutions. All an institution needs is a clear niche to establish its viability and
impact, and the institutions could be all set for more effective operations. A case in
point could be how the maritime schools in the Philippines, with the assistance of
the CHED, were all forced to upgrade their curricula and instruction systems to
comply with international standards. A similar development could happen in certain
engineering programs that seek to supply human resources for the international
market. Of course, in the process of reckoning with these international standards,
some institutions might be squeezed out, but the across-the-board effect of improving
quality and the internal efficiency of HEIs cannot be discounted.
Similarly, institutions that aspire to participate in some form of international
education, for whatever reasons, will have to reckon with international standards of
quality, efficiency, among others. Even if the middle- and high-level institutions are
not actually able to meet these standards, an attempt by these institutions to internally
discuss and negotiate the terms of an international standard, to assess its present
systems and outputs, and to reform and improve these will definitely improve the
institution, even in the slightest way. It is likely that some inputs, processes, and
outputs will be changed and made better than the status quo. If at all, reckoning
with higher standards should have the effect of shaking up and maybe improving
the institutional culture. These developments are likely if institutions find the means
to marshal enough resources for their institutions development needs.

INTERNATIONALIZING PHILIPPINE HIGHER EDUCATION: SOME


CONSIDERATIONS
Given the above discussions on the possible positive and negative
consequences of engaging international higher education in the Philippines, what
might be the best approach to this whole issue. How should Philippine higher
education address the matter of internationalizing higher education within the
context and discourse of globalization?

International Higher Education 259


It seems obvious that other countries would seek to engage Philippine HEIs
because they see the country’s students and institutions as beneficial partners (i.e.,
as a possible market for their programs, as a possible source of skilled graduates that
their economies can absorb). The main question that needs to be reckoned with on
our end is: “Why would we want to participate in activities of international higher
education?”
Since it is unlikely that international higher education activities will improve
equity in access to quality higher education or improve the efficiency of the higher
educational system, the best reason to engage in international higher education
activities is the possibility of improving the quality of Philippine higher education.
Thus, the framework for international higher education in the Philippines should
have as its raison d’etre, upgrading the quality of higher education. All the activities
to be engaged in should directly or indirectly address this broad and important
concern. As such, the focus ought to be on programs involving strategic cooperation
to improve local capacities in the medium and long terms, and programs that
internationalize the standards of educational inputs, processes, and outputs, instead
of on programs that seek to increase participation in the open market transnational
education.
In this regard, one of the foremost issues that need to be clarified is the
meaning of “quality” in the present global environment of higher education. In
consideration of this global environment, many people are tempted to presume
that HEIs in the Philippines would best meet these new requirements of quality by
foregoing the traditional university functions of knowledge production and
verification and instead focusing on other functions in which the Philippines has a
competitive advantage (for example, training of the service sector). However, others
have argued that such a single minded focus on specific areas of relative strengths
might be dangerous in the medium and long terms. For example, focusing on the
service sector might create oversupply in specific labor markets. Moreover, focusing
educational investments in one service sector might be too risky as the demands of
the global labor market are not stable. The competition in the global labor market
is also very stiff, as many countries can also produce skilled services, possibly at
lower costs. Thus, there is no guarantee that our competitive advantage in this
sector can be maintained.
What can sustain competitive advantage in a global knowledge-based
economy is high-end knowledge. In the medium and long terms, the production
of new knowledge will prove to be the most important resource of any country.
Theoretically, HEIs already have some experience in this field. Thus, quality in
higher education will still need to focus on factors related to the knowledge
production functions of HEIs.
However, the indicators of quality are also changing. For example, Gibbons
(1998) suggests that the traditional criteria and systems for evaluating quality in
higher education are no longer sufficient. The traditional criteria involving peer
evaluation of the features of the inputs, processes, and outputs of HEIs now need to

260 Education and Globalization


be expanded. Additional criteria are required by the expanded context of evaluating
the work of HEIs. Gibbons suggests that criteria related to competitive advantage,
cost effectiveness, and social acceptability will have to be reckoned with. Thus, the
goals that HEIs have to address are defined within a more complex and dynamic
environment that cannot be fixed for a long period of time.
The resources needed to address these complex and dynamic demands are
now distributed across institutions within one country and across countries. It is
unlikely that individual institutions will have all the resources needed to meet the
demands of the new global higher education environment. This is why educational
scholars (see e.g., Abramson et al. 1996; Gibbons 1998) are advocating alliances
and partnerships among institutions nationally and globally. It is in this regard that
Philippine HEIs should engage in international education activities.
Strategic partnerships can be forged between Philippine and foreign
institutions to improve, among other things, the quality of the curricular programs,
the qualifications of the faculty members, the nature of the quality assurance systems,
and the standards of the educational resources like libraries, laboratories, and other
learning materials. In particular, such partnerships can be forged to help a larger
proportion of local faculty members obtain advanced degrees in foreign universities,
be exposed to alternative content and approaches to instruction and mentoring,
among others. As discussed, benchmarking of curricular inputs, processes, and
outputs with international referents should also be useful for institutions that are
in a good position to improve their current curricular programs. (However, others
have questioned the benefits of international benchmarking for weak institutions
and educational systems. Vedder 1994.)
These international partnerships can be especially potent in improving the
research capabilities and outputs of the local institutions, as local researchers can
collaborate in research and other development endeavors that are increasingly
becoming multidisciplinary, international, and multicomponent. Research is a
particularly weak area in Philippine higher education, and this weakness is due to
many factors related to inadequate financial and human resources needed to
maintain a viable research culture (Bernardo 1997). Given that all local HEIs
including the elite universities in Metro Manila have less than ideal research
infrastructure, financial resources, and number of skilled researchers, it makes sense
to partner with international institutions that can complement the strengths and
weaknesses of local institutions.
One of the issues that local HEIs have to be concerned with, however, is the
status of the local institutions in such international partnerships. In particular, will
the local institution be co-equal partners or will they be mere conduits of the foreign
HEIs for their global operations? In the global distributed knowledge production
system, different institutions will have different capabilities and resources to bring
into the international partnerships, and hence, different institutions will have
different levels of participation or involvement in such partnerships. It is then
conceivable that some local institutions would serve as conduits to foreign

International Higher Education 261


institutions, whereas others would participate in more mutually cooperative
arrangements. In research, for example, we can anticipate that some local
institutions may forge partnerships wherein their teaching staff will participate by way
of assisting in local data-gathering activities. On the other hand, other local institutions
may be involved more intensively in the initial research conceptualization processes
until the dissemination and publication aspects. In the long term, forging of more
mutually cooperative arrangements where local institutions are co-equal partners
should be the goal.
One of the important features of discussions on quality in Philippine higher
education is the fact that there is a very wide range in levels of quality across the
hundreds of HEIs. As noted in Part 4, there is a huge gap between the elite HEIs
and the larger proportion of HEIs serving the lower middle and lower socio-
economic sectors of the education market. Within discussions of international
partnerships to improve the quality of Philippine higher education, there should
also be an explicit attempt to develop networks and partnerships among Philippine
institutions in ways that will bridge the quality gap among the local colleges and
universities. The imperative that resources be shared to meet complex external
demands and higher quality standards is even more necessary in the Philippine
context.

SUMMARY
In understanding the prospects of international higher education in the
Philippines, we have to reckon with the issue of globalization. We need to find ways
of answering the question, “How do Philippine higher education institutions position
themselves in relation to these forces of change?”
In what is emerging as a highly competitive field, most of the Philippine
higher education system will have much difficulty participating in the global higher
education environment because of some very obvious weaknesses within the present
system that were discussed in Part 4. The elite institutions that have some clearly
defined areas of strength could very well find good opportunities to participate and
benefit from the new environment of international higher education. But for the
most part, international higher education is likely to intensify the weaknesses in the
present system. Most notably, internationalization is likely to exacerbate inequitable
access to quality higher education and the poor internal and external efficiency
that presently plagues Philippine higher education.
There are several prospects, however, for hoping for better consequences
of this global transformation of higher education, particularly for improving the
quality of Philippine higher education. The viability of these prospects largely
depends on improving or correcting some of the imperfections in the immediate
external environment of HEIs. As it is not the purpose of the study to make specific
policy recommendations, it will be limited to the following broad suggestions.

262 Education and Globalization


Recommendations made by previous educational reform initiatives regarding
rationalizing the higher education system and reforming the financial systems of
higher education should be vigorously pursued in order to improve the internal and
external efficiency of the higher education system, and thus make it less vulnerable
to the possible negative consequences of international competition.
Related to the recommendations on reforming the financial systems, there
should be more intensive efforts to rationalize the scheme for government financial
assistance to students and to private financial institutions. Some of the
recommendations in this regard include the establishment of an equitable and
efficient loan program, voucher systems, and other competitive scholarships and
financial assistance program. Such programs should have two important
characteristics: (1) it should ensure that all qualified candidates are allowed to
proceed to tertiary education institutions of their choice, and (2) it should introduce
competition among the private and public HEIs so as to motivate these institutions
to improve their outputs. Such interventions would hopefully buffer the effects of
internationalization on the current inequities in access to quality higher education.
Recommendations related to the improvement of quality (i.e., quality
assurance systems, teacher development, selective deregulation, etc.) should be
pursued to motivate institutions to improve quality and efficiency so as to enable
more institutions to participate in international education programs. The PCER
(2000) recommendation for a large scale faculty development in the tertiary level
should be pursued, in a way that will be consistent with efforts to rationalize the
higher education system. Such efforts should enable more institutions to participate
and take advantage of the benefits afforded by various types of international
education programs.
The final recommendations also relate to government agencies. In
particular, government agencies should ensure that the external environment for
HEIs are more conducive for internationalization programs. For example,
recommendations related to the deregulation of the curriculum should also be
considered. Presently, the curriculum of HEIs in the Philippines is subject to the
guidelines set by the CHED. There is some confusion, however, as to whether the
“guidelines” are actually simply suggestive or mandatory. According to reports of
HEIs, the regional offices of the CHED treat such guidelines as mandatory
prescriptions that have to be followed to the letter. On the other, in some public
announcements, some officials of the CHED central offices assert that such
guidelines are simply that, guidelines. It seems, that the CHED will have to find a
clearer voice regarding this matter. The position should balance the concern for
ensuring that the degree programs offered by HEIs offer important minimum
requirements, and the concern that HEIs have enough elbow room or flexibility to
modify and innovate in curriculum development, particularly in ways that will allow
the programs to be more competetive and responsive in the emerging globalized
environment.

International Higher Education 263


One way by which CHED can create a better environment for curricular
developments, is by taking a more proactive stance in forging cooperative links in
strategic areas of research and collaboration between Philippine and international
HEIs. Such strategic collaborations can obviously provide frameworks and inputs
for curricular innovations and improvements, not to mention their positive impact on
faculty, student, and overall institutional development.
As the CHED strives to find ways that Philippine higher education effectively
engages international higher education, it should also ensure that the influx of foreign
higher education programs does not provide unfair competetion to local HEIs,
particularly the private HEIs. Thus, the CHED should ensure that whatever
requirements are imposed on local HEIs should also be required of foreign programs
(or even consider not requiring local HEIs what is presently not required of foreign
programs). Tullao (this volume) has argued that there are clear provisions in the
General Agreement on Trade and Services (GATS) that stipulate the bases upon
which agencies like the CHED and the Professional Regulatory Commission (PRC)
can impose some regulatory requirements on these foreign programs.
To clarify, however, the purpose of regulating these foreign programs should
not be to remove the competetion posed to local HEIs. Indeed, in the spirit of
globalization, what is important is that the competetion is conducted in a level
playing field, and in doing so there can be a viable environment where quality
higher education can continue to develop and be made available. In this regard,
what the CHED and other government agencies should strive to develop is a higher
education environment where local and foreign HEIs compete in a level playing
field. But the primary purpose of regulation should be to protect the Filipino
consumer – the Filipino students and their families who will spend their hard earned
money on higher education, whether this is provided by local or international
programs. In this regard, the CHED should ensure that information on the quality
of these program (inputs, processes and outputs) are made accessible to the higher
education students and their families so that they can make informed decisions
regarding the options that are available. Doing so would also provide an important
input towards allowing the higher education market to start correcting some of its
flaws. By providing the public with basic but important information on the inputs,
processes, and outputs of all higher education (both foreign and local), the external
inefficiencies of the Philippine higher education system can be addressed. Students
and their families can begin investing their money more wisely on higher education
options with more positive returns, and thus gradually result to the phase out of
poor quality programs that only continue to exist because the public does not know
how poor their programs are.
Finally, the appropriate agencies should also study the immigration policies,
particularly those that govern the entry of students, scholars, and other educational
practitioners, and remove all the disincentives for foreign individuals to enter the
country to study in our local HEIs. There is, of course, a need to protect national
security interests, but these interests should be balanced with the very positive

264 Education and Globalization


prospects of supporting local HEIs by way of providing opportunities for foreign
students to participate in local HEIs thus making the local HEIs more international
in the process.

Concluding Statements
The intention to participate in activities and programs of international
education should not be for its own sake. The discussions in Parts 2 and 3 of this
report clearly show that internationalizing higher education is currently embedded
within the discourse of globalization, particularly in the discourses of merging labor
and economic markets, and of distributed knowledge production systems. It should
be within this broader context that the benefits (and harmful consequences) of
international higher education programs should be understood. However,
responding to these global movements is not a simple matter, as the features of
Philippine colleges and universities are deeply entrenched within the problematic
and complex system of higher education in the country that are described in Part
4. Thus, the specific modes of responding to the various modes of international
higher education are necessarily constrained by some relevant features of Philippine
higher education as discussed in Part 5.
What should be emphasized in all these discussions is the notion that higher
education has an important role in the development, validation, and dissemination
of knowledge, and in the total development of human potential. Implicit in this
role is the responsibility to bridge the inequities that are given in any social context.
Indeed, the social returns of higher education relate to these important roles and
responsibilities. There are many ways by which Philippine higher education may
respond to globalization in higher education. If Philippine higher education seeks
to be true to its social responsibilities, it should not respond to these forces in ways
that will simply intensify the social inequities that it should be addressing. Instead,
it should respond in ways that will move to solve the social inequities in the long
term, and that will eventually realize the full potential in all Filipinos.

International Higher Education 265


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5
CHAPTER

G
Philippine Maritime and Nursing Education
Benchmarking with APEC Best Practices
Veronica Esposo Ramirez, Ph.D.

ABSTRACT

A
s the labor capital of the world, the Philippines supplies almost every vessel
that sails the seven seas with Filipino marines and marine engineers on board.
The Philippines being the biggest health service provider, almost all hospitals
in the US, UK an